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Green input market-spatial & temporal trends:

It is very difficult to estimate the total size of green inputs market in India because of its diversity in terms of products and also due to the nature of it being unorganized market. Green inputs into agriculture include bio-fertilizers, bio-pesticides, compost, Farm Yard Manure (FYM), green manure etc. As most of this inputs are either not traded and even if they are traded, it is only at informal levels available information regarding production capacity, demand and sales is at best sketchy estimation and hence inadequate. The limited number well-established firms that have their presence in this market today as a result it this is predominately controlled by the small and local producers of bio-fertilizer, vermi compost and other input producers who are in large numbers.

Relatively speaking there is more rigour in estimation of bio-fertilizer market in India, because of the presence of some large producers in production of bio-fertilizers and comparatively this is more organized than other green inputs market. Based on the gross cropped area in India (190 million hectare) and recommended doses of bio-fertilizers, potential demand is estimated to be about 6,27,000 MT. This demand can further be segregated into different categories of bio-fertilizer, such as Rhizobium, Azotobactors, Azospirillium, BGA, and Phosphate Solubilizer etc. whose demand differ widely as shown in Table:1 But by looking at the product segregation as seen in Table:1 potentials for different strains of bio – fertilizers in India:

Table 1: Estimated Total Potential Demand for Bio-fertilizers in India

Category of Bio- Fertilizer

Amount in Million Tonnes

Rhizobium

35,730Mt

Azotobacter

162,610Mt

Azospirillum

77,160Mt.

BGA

267,510Mt

Phosphate solubilizer

275,510Mt

TOTAL

818,730Mt

Source: Abhay Phadke, 2001

For year 2000 proposed production target for bio-fertilizer was 39,165Mt, which was only 4.8% of the total estimated demand (Abhay Phadke, 2001). But the actual production and the distribution of bio fertilizers are below the targeted (as seen in Table.2). This shows the huge gape between potential market demand and production and also provides an opportunity for bio-fertilizer producers.

There has been a positive trend in India, with respect to production of bio-fertilizers. As it can be seen from Table 2 that while the total production of bio-fertilizer in India in 1992-93 was 2005.0 tons and it has increased to 8010.1 tons by 1998-99. Similarly the consumption/distribution of bio-fertilizer has also increased 1600.01 tons to 6700.27 tons during the same time period.

Table: 2 Installed production capacity, total production and distribution of bio-fertilizer in India (1992-99)

Year

Installed Production Capacity

(Tons)

% Growth Rate in Installed Capacity

Total Production (Tons)

% Growth Rate in Production

Total Consumption/ Distribution

(Tons)

% Growth Rate in Consumption/ Distribution

1992-93

5400.5

 

2005.0

 

1600.01

 

1993-94

6125.5

13.42

3084.0

53.82

2914.37

82.15

1994-95

8114.5

32.47

5800.5

88.08

4988.90

71.18

1995-96

10680.4

31.62

6692.3

15.37

6288.32

26.05

1996-97

12647.0

18.41

7406.6

10.67

6681.44

6.25

1997-98

N.A.

0.00

7104.6

-4.08

6295.63

-5.77

1998-99

16446.0

30.04

8010.1

12.75

6700.27

6.43

Source: The Fertilizer Association of India Bio-fertilizer Statistics 1999-2000

But the growth rate in installed bio-fertilizer capacity is comparatively more stable than the growth rate in total production, consumption & distribution of bio-fertilizers (Table: 2). For total production of bio-fertilizers growth rate had reduced to 12.75% during 1998-99 from 53.82% in 1993-94 and during same period the growth rate of consumption & distribution had reduced to 6.43% from 82.15%. This is an indication that there is not only a need but also a role for market development for green agriculture inputs in India.

Fig: 5 Installed production capacity and total production of bio-fertilizer in India (1992-99)

Source: Adapted by authors from FAI, 2001.

 

Fig: 6 Total Consumption / Distribution of Bio-fertilizer in India (1992-99)

Source: Adapted by authors from FAI, 2001.

Inspite of the impressive growth rate of more than 200% in production capacity and around 300% growth rate experienced in production and consumption of bio-fertilizers in India within 6 years (i.e., from 1992-93 to 1998-99) yet it is only around 1.5% of the estimated demand potential for bio-fertilizers in the country.

Fig:7 Trends in Bio-fertilizer Production in Uttar Pradesh (1997-2003*)

*Production for 2002-03 is estimated

Source: Adapter by Authors from the data given by Department of Agriculture, Govt. of U.P, 2002

 

Fig: 8 Consumption of bio-fertilizer in Punjab (1999-2002)

Source: Compiled by authors from different bio-fertilizer producers in Punjab1

Region wise production trend analysis in India shows wide variations across the country. Western India has the highest bio-fertilizer production capacity as it can be seen that for the 1999-2000 the estimated production in this region was 5098.2 tons and it was expected grow upto 6429.9 tons by 2000-01 (FAI, 1999-2000). Southern India has the second largest bio-fertilizer producing region with 4491.6 tons for 1999-2000 and 6117.5 tons for 2000-01. Inspite of the huge agricultural production base in Northern India the production of bio-fertilizer stood at 207.2 tons for 1999-2000. At state level Maharashtra is highest bio-fertilizer producer state with 3173.0 tons of likely production for 2000-01 followed by Karnataka with likely production of 3152.5 tons for same year (FAI, 2001). Other states are also showing the trends of increasing orientation towards bio-fertilizers. For example in last four years value of bio-fertilizer distributed in Uttar Pradesh has increased from around Rs 2 Lakh in 1997-98 to Rs. 7 Lakh in 2001-02 (Fig: 7). Punjab is also showing increasing trends for bio-fertilizer market inspite of the fact that the sale of bio-fertilizer in Punjab was started in only 1997-98 by 2001-02 market has grown to 45 mt/year (Fig: 8).

Increase in use of vermi-compost has been observed for kitchen gardens and for cultivation of high value cash crops but the information about actual quantity used is not available. Area under green manure is one indicator that is showing negative trends because the area under intensive cropping is increasing. Increase in irrigation facilities are indirectly contributing towards reduction of area under green manure is as seen in Table 3.

Table: 3 Area under Green Manure in India (1995-97)

Area Under Green Manure in India

Year

Area in Lakh Hectares

1994-95

35.872

1995-96

34.411

1996-97

22.512

Source: FAI, 1999-2000.

Other green inputs for agriculture in India are used in very minimal quantity. Some of the popular bio-pesticides include neem based formulation and Bacillus thuringingiensis (Bt). Consumption of bio-pesticides in India has increased from 83 MT (Tech. Grade) during 1994-95 to 686 MT during 1999-2000 and in case of neem based pesticide formulation it has increased 40 MT to 71 MT during the same period in case of Bacillus thuringiensis (Bt) (THIRTY-SEVENTH REPORT STANDING COMMITTEE ON PETROLEUM & CHEMICALS, 2002).

1 Panjab Agriculture University, Krishik Bharathi Cooperative Ltd (KRIBHCO), Indian Farmers Fertilizer Cooperative Ltd (IFFCO), National Fertilizer Ltd, Southern Petrochemical Industrial Corporation (SPIC), and Gujarat State Fertilizer Corporation (GSFC)

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