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Farmers’ buying behaviour and dealers’ perception about the use of pesticides and fertilizers in Selected Districts of North Gujarat

Abstract

The Indian agrochemicals market demonstrated significant expansion, achieving a value of nearly USD 6.51 billion in 2023, and is anticipated to grow at a Compound Annual Growth Rate (CAGR) of 8.5 per cent from 2024 to 2032, nearing USD 13.61 billion by 2032. Regarding global pesticide exports, India ranked 2nd with a value of 5.5 billion US$. Additionally, the consumption of chemical pesticides in India exhibited a gradual incline from 2018-19 to 2021-22, rising from 59,670 metric tons (MT) to 63,284 MT. The consumption of fertilizers in India also displayed an upward trajectory from 2017-18 to 2020-21, rising steadily from 515 LMT to 629 LMT. This study comprehensively examines the purchasing behaviour of farmers regarding pesticides and fertilizers, alongside dealers' perspectives in stocking and selling these agricultural inputs. Key findings indicated a predominant reliance on agri-input stores for purchases, with effectiveness and retailer suggestions significantly influencing buying decisions. While concerns regarding health hazards and high prices were paramount, online purchasing remains limited due to quality assurance and a lack of digital literacy. Dealers face challenges including competition and credit demands, underscoring the complex dynamics within the agricultural input market.

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Introduction

Agriculture plays a crucial role in India, serving as the backbone of the economy and providing livelihoods for over half of the country's population. The agricultural sector also supports numerous related industries, including food processing, textiles, and trade. In 2021-22, the net sown area covered a large area of 1,410 lakh hectares, accompanied by a gross cropped area of 2,191 lakh hectares, showcasing the country's immense scale of agricultural activities (MoSPI, 2023). The production of staple crops, diverse food items, and animal products caters to the nutritional needs of the people. India is the world's largest producer of milk, pulses, and jute, and ranks as the second largest producer of rice, wheat, sugarcane, groundnut, vegetables, fruit, and cotton. It is also one of the leading producers of spices, fish, poultry, livestock, and plantation crops (FAO, 2024). Uncontrolled pests significantly diminish both the quantity and quality of food production, Pests pose a significant threat to crop yields, resulting in substantial losses. Plant pests and diseases alone are responsible for decreasing global crop yields by an estimated 20 to 40% annually. These losses worsen food insecurity, a problem compounded by growing population numbers and climaterelated challenges (FAO, 2024). Food crops face competition from various challenges, including 30,000 species of weeds, 3,000 species of nematodes, and 10,000 species of plant-eating insects. (Carerating, 2024) [1] . In the pre-planning era, agriculture in India relied heavily on organic manures. However, the fact that these manures did not sufficiently boost agricultural production posed a challenge. Nonetheless, the growing demand for food required the adoption of more effective cultivation methods utilizing superior inputs in agricultural operations. This need, coupled with technological advancements, led to the introduction of agro-chemicals in agriculture. (Hena, 2004) [8] . Agrochemicals are chemical compounds typically used to manage pests and diseases and to provide essential nutrients to the soil. The application of agrochemicals, including growth regulators, pesticides, and fertilizers, has enhanced crop yield and growth, thereby contributing to the stability of agricultural production. (Singh et al., 2020) [10] . The Indian agrochemicals market attained nearly USD 6.51 billion in 2023. It is projected to expand at a Compound Annual Growth Rate (CAGR) of 8.5% from 2024 to 2032, reaching close to USD 13.61 billion by 2032. (Expert Market Research, 2024) [5] . In the fiscal year 2021-22, the pesticide sector exhibited robust performance with a Compound Annual Growth Rate (CAGR) of 8.9% signifying the industry's capacity for meeting demand and its sustained growth, underscoring its vital role in agricultural practices. (Department of Chemicals and Petrochemicals, 2022) [2] . In 2022, China led pesticide exports with US$11.1 billion (22.4% of total). India followed with $5.5 billion (11.2%), and the United States with $5.4 billion (10.9%). France www.extensionjournal.com exported $4.1 billion (8.2%), and Germany $3.9 billion (7.9%). These top five countries dominated global pesticide exports in terms of dollar value. (World's Top Expert, 2024) [11] . The consumption of chemical pesticides in India witnessed a gradual increase over the years from 2018-19 to 2021-22. In 2018-19, the pesticide consumption stood at 59,670 metric tons (MT), which rose to 63,284 MT in 2021-22. This consistent upward trend in pesticide consumption reflects the continued reliance on chemical pest management solutions in the agricultural sector within India. (Directorate of Plant Protection, Quarantine & Storage, 2024) [4] . In 2022, India experienced trade deficit in fertilizers, amounting to -$17.1 billion. Brazil topped the list with a deficit of -$24.5 billion, followed by the United States of America at -$4.8 billion. France and Australia also had significant deficits, recording -$3.8 billion and -$3.5 billion respectively. India's deficit underscores a substantial reliance on fertilizer imports and highlights a significant aspect of its trade dynamics in the global fertilizer market. (World's Top Expert, 2024) [12] . The fertilizer consumption in India exhibited an upward trend from 2017-18 to 2020-21, rising steadily from 515 LMT to 629 LMT. However, in 2021-22, consumption dipped slightly to 579 LMT. Overall, fluctuating but generally increasing fertilizer usage was observed over the specified period. (Department of Fertilizers, 2022) [3] . Objectives 1. To study the farmers' buying behaviour about the use of pesticides and fertilizers 2. To study dealers' perception about the use of pesticides and fertilizers

Research Methodology

The research employed both primary and secondary data sources. Primary data were gathered directly from respondents through a structured schedule. 1. The socio-economic profile of farmers surveyed revealed that the majority of farmers (53%) fell within the age group of 41 to 60 years, with the highest education level being Below or equivalent to SSC (59%). Most farmers (96%) were engaged in farming + animal husbandry, and the largest landholding (45%) category was between 2.1 to 4 Ha. Regarding annual income, the highest proportion (37%) reported earnings between 1 to 3 Lakh annually. The source of purchase for pesticides was asked to respondents, with the option to provide multiple responses. Among 180 participants, all indicated that they obtained pesticides from agricultural input dealers. Additionally, 19 (11%) farmers reported using online platforms alongside agricultural input stores for their pesticide purchases. The frequency of purchase for pesticides among respondents was categorized into two groups, i.e., 2-3 times a year and www.extensionjournal.com more than 3 times a year. The respondents, comprising 82% of the total, reported purchasing pesticides more than 3 times a year. Additionally, 18% of respondents reported purchasing pesticides 2-3 times a year. The average cost of pesticide per hectare of land varies across different seasons. For the Kharif season, the average cost was ₹ 4439. During the Rabi season, it increases to ₹ 4970 per hectare. However, in the Summer season, the average cost is notably lower, at ₹ 285 per hectare due to farmers either not cultivating crops during this period or cultivating crops such as pearl millet that require fewer pesticides, resulting in reduced pesticide usage. The influencers for the purchase decision of pesticides were asked of the respondents, with the option to provide multiple responses. Among them, 154 (86%) farmers acknowledged agri-input retailers as significant influencers, 73 (41%) indicated making decisions by themselves, and 23 (13%) mentioned being influenced by fellow farmers when purchasing pesticides. The promotional activities influencing the purchase decision of pesticides were asked of the respondents, with the option to provide multiple responses. It was found that leaflets had the greatest impact, with 151(84%) respondents indicating they influenced their decisions. Following this, TV advertisements were mentioned by 67 (37%) respondents as influential. Additionally, wall paintings were said by 52 (29%) respondents, while social media had an impact on the decisions of 44 (24%) respondents. The Extension activities influencing the purchase decision of pesticides were asked of the respondents, with the option to provide multiple responses. It was found that group meetings had the most impact, with 167 (93%) respondents attributing their decisions to this activity. Following closely behind, on-farm demonstrations influenced the decisions of 136 (76%) respondents. Moreover, farm visits were mentioned by 54 (30%) respondents, while agricultural fairs played a role in the decisions of 30 (17%) respondents.

Farmers' buying behaviour about the use of pesticides and fertilizers Source of Purchase for Pesticides

Frequency of Purchase for Pesticides

Average Cost of Pesticide per Hectare of Land

Influencers for the Purchase Decision of Pesticides

Promotional Activities Influencing the Purchase Decision of Pesticides

Extension Activities Influencing the Purchase Decision of Pesticides

Factors Influencing Purchase of Pesticide

Garrett's ranking technique was used to find out the most significant factors that influence the respondent's purchase of pesticides. The first rank was of effectiveness with an average Garrett score of 74.98, indicating that buyers prioritize the pesticide's ability to deliver desired results in pest control. Following closely behind is the influence of retailer suggestions, with an average score of 65.42, suggesting that recommendations from sellers play a significant role in purchasing decisions. Brand reputation emerges as the third most influential factor, getting an average score of 55.47, highlighting the importance of trusted brands for gaining consumer confidence. Price, although notable, ranks fourth with an average score of 51.08, indicating that while cost plays a role, it is not the sole determining factor. Easy availability and packaging size occupy the fifth and sixth positions, respectively. Lastly, the residue level on produce, with an average score of 22.44, ranks lowest among the factors considered, suggesting that while consumers are concerned about the environmental impact, it holds less role in their purchasing decisions compared to other factors.

Problems & Concerns while Purchasing Pesticides

The weighted average mean (WAM) technique was utilized to assess the problems and concerns faced by farmers when purchasing pesticides. www.extensionjournal.com The different fertilizers used were asked of the respondents, with the option to provide multiple responses. The results revealed widespread use of urea and DAP, with all 180 respondents indicating their usage. Additionally, 149 (83%) respondents reported using SSP, while 131 (73%) mentioned NPK. Furthermore, Ammonium Sulphate was utilized by 126 (70%) respondents, followed by MOP with 102 (57%) respondents. Nano Urea was reported by 54 (30%) respondents, and APS was the least used, mentioned by 12 (7%) respondents. The purpose for using fertilizers was asked to respondents, with the option to provide multiple responses. The results indicated that the primary purpose of fertilizer application was to increase crop yield, as mentioned by 180 respondents. Additionally, 127 (71%) respondents mentioned enhancing crop quality as a goal, while 124 (69%) respondents reported using fertilizers to address specific nutrient deficiencies in their crops. The method for deciding the quantity of fertilizers was asked of the respondents, with the option to provide multiple responses. The results indicated that the most common method was considering crop type and stage, chosen by 159 (88%) respondents. Additionally, 124 (69%) respondents reported relying on the previous year's yield data to determine fertilizer quantity. The sources of purchase for fertilizer were asked of the respondents, with the option to provide multiple responses.

Fertilizers Used by the Respondents

Purpose for Use of Fertilizers

Method for Deciding the Quantity of Fertilizer

Sources of Purchase for Fertilizer

The findings revealed that the majority of respondents, 174 (97%) in total, relied on agri-input stores for their fertilizer procurement. Additionally, 77 (43%) respondents reported purchasing fertilizers from depots. The influencers for the purchase decision of fertilizer were asked to respondents, with the option to provide multiple www.extensionjournal.com responses. The results showed that all 180 respondents made their pesticide purchase decisions independently. Additionally, 20 (11%) respondents mentioned other farmers as influencers in their pesticide purchase decisions. The promotional activities influencing the purchase decision of fertilizers were asked to the respondents, with the option to provide multiple responses. The findings revealed that leaflets had the most notable impact, with 120 (67%) respondents mentioning them as influential. Following leaflets, TV advertisements influenced the decisions of 95 (53%) respondents, while wall paintings were mentioned by 44 (24%) respondents. Offers influenced the decisions of 17 (9%) respondents regarding fertilizer purchases. The extension activities influencing the purchase decision of fertilizers were asked to the respondents, with the option to provide multiple responses. The findings showed that group meetings had the most notable impact, with 142 (79%) respondents indicating their influence. Following group meetings, farm visits influenced the decisions of 74 (41%) respondents, while agricultural fairs were mentioned by 32 (18%) respondents. On-farm demonstrations influenced the decisions of 13 (7%) respondents regarding fertilizer purchases.

Average Cost of Fertilizers per Hectare of Land

Influencers for the Purchase Decision of Fertilizers

Promotional Activities Influencing the Purchase Decision of Fertilizers

Extension Activities Influencing the Purchase Decision of Fertilizers

Factors Influencing the Purchase of Fertilizers

Garrett's ranking technique was used to find out the most significant factors that influence the respondents' purchase of fertilizers.

Problems & Concerns while Purchasing Fertilizers

The weighted average mean (WAM) technique was utilized to assess the problems and concerns faced by farmers when purchasing fertilizers. The first rank was of soil deterioration with a WAM score of 4.42, indicating that farmers consider soil deterioration associated with fertilizer use as their foremost concern. High prices closely follow with a score of 3.97, suggesting that the cost of fertilizers was a big problem faced by the farmers. Lack of credit availability ranks third with a score of 3.93, highlighting financial constraints faced by farmers in accessing fertilizers because of cash transaction necessary for the purchase of fertilizers. Packaging size and the unavailability of preferred brands occupy the fourth and fifth positions, respectively, with scores of 2.53 and 2.45, indicating practical considerations and brand loyalty. Lastly, less knowledge about fertilizers ranks sixth, with a score of 2.32. Respondents were asked if they had ever purchased pesticides or fertilizers online, with the option to provide multiple responses. The results showed that 11% of respondents indicated they had made online purchases, while 89% reported they had never made online purchases. This data highlights the limited adoption of online purchasing among respondents for these products. The majority of respondents still prefer traditional purchasing methods. www.extensionjournal.com

Online Purchase of Pesticides or Fertilizers

Online Platform Used for the Online Purchase Among the 19 respondents who reported making online purchases, they specified the platforms they used. 53% mentioned making purchases by calling, 31% used mobile applications, and 16% used websites. This data shows a preference for calling and mobile applications over websites. The 19 respondents were asked about their reason for purchasing through online platforms. Among them, 68% of respondents mentioned convenience as the primary motivator for their online purchases. The remaining 32% of respondents indicated that they used online platforms to test the service. The challenges or concerns regarding online purchases were asked of the respondents, with the option to provide multiple responses. Quality assurance was the primary concern, with 153 respondents expressing worries about product quality. Additionally, 72 respondents cited a lack of digital literacy as a challenge, while 69 respondents were concerned about delivery reliability. Fear of fraud was mentioned by 33 respondents as another notable challenge in online purchases.

Reason for Online Purchase

Challenges or Concerns Regarding Online Purchase

Dealers' perception about the use of pesticides and fertilizers Socio-economic profile of dealers Socio-economic parameters such as age, education level, farming type, land holding, and annual income were considered. The socio-economic profile of farmers is recorded in Table 24. The dealer's survey revealed that the majority of dealers (35%) were between 25 to 40 years old, with more than 10 years of experience (62%) in the industry. Most dealers (62%) had attained at least a graduation level of education. Dealers predominantly engaged in both cash and credit sales, with only a small percentage exclusively conducting cash or credit sales. The type of sale among dealers was categorized into three groups, namely Both, Cash, and Credit. The dealers, comprising 93% of the total, engaged in both cash and credit sales. A smaller proportion, accounting for 5% of dealers, conducted cash sales only. Additionally, 2% of dealers exclusively conducted credit sales. Dealers indicated that the most common time for stocking is 15 days before the season, accounting for 77% of responses. This timing allows for timely availability of products, ensuring that dealers are well-prepared for the upcoming season. Some dealers also opt to stock 30 days before the season, representing 18% of responses. This is often due to availability of products at lower prices during this period, allowing dealers to capitalize on cost savings. A smaller proportion of dealers, 5% prefer to stock just 2 days before the season begins.

Type of Sale

Time for Stocking

Factors Influencing in Stocking Particular Pesticides and Fertilizers

Garrett's ranking technique was used to find out factors influencing in stocking particular pesticides and fertilizers.

Problems Faced by Dealers in Selling Pesticides and Fertilizers

The weighted average mean (WAM) technique was utilized to assess the problems and concerns faced by farmers when purchasing fertilizers. Competition from other dealers emerged as the top-ranked problem with a WAM score of 4.67, highlighting the intense competition within the market. Demand for credit from farmers ranked second with a score of 4.58, indicating the challenges dealers face in managing credit requests. Low margin followed closely at third place with a score of 4.12, underscoring the impact of profit margins on dealers' profitability. Insufficient loan facilities and high transportation costs also posed notable challenges, with scores of 3.63 and 3.10 respectively. After-sales service, packaging size, and not timely supply of products were identified as problems, but to a lesser extent.

Conclusion

The socio-economic profile of farmers reveals that a majority are aged between 41 and 60, predominantly have education levels below or equivalent to SSC, and are engaged in both farming and animal husbandry, with land holdings primarily between 2.1 to 4 hectares and an annual income mostly between 1 to 3 lakh. Farmers primarily purchase pesticides from agri-input stores, influenced by effectiveness, retailer suggestions, and brand reputation, although health hazards and high prices are major concerns.

In terms of fertilizer use, the primary goal is to increase crop yield, with purchasing decisions driven by brand reputation and effectiveness, despite concerns over soil deterioration and high costs. Dealers, mainly aged 25 to 40 with significant industry experience, stock products based on quality and farmers' demand but face challenges such as intense competition, high demand for credit from farmers, and low-profit margins. Limited adoption of online purchasing highlights a preference for traditional procurement methods. To address these issues, training farmers on pesticide usage, balanced fertilization, and soil testing is essential. Enhancing the role of retailers through regular training, expanding detailed promotional activities, building strong relationships with dealers, and improving farmers' digital literacy to build trust in e-commerce platforms are recommended.

References

  1. Department of Chemicals and Petrochemicals. Chemical and petrochemical statistics at a glance. New Delhi: Government of India; 2022.
  2. Department of Fertilizers. Annual report. New Delhi: Government of India; 2022.
  3. Directorate of Plant Protection, Quarantine and Storage. Consumption of chemical pesticides in various states and union territories during 2018-19 to 2022-23. Faridabad: Government of India.
  4. Hena M. SWOT analysis of agro-chemical distribution system in Thrissur district. Kerala: Kerala Agricultural University; 2004.
  5. Singh D, Singh SK, Modi A, Singh PK, Zhimo VY, Kumar A. Impacts of agrochemicals on soil microbiology and food quality. In: Prasad MNV, editor. Agrochemicals detection, treatment and remediation. Oxford: Butterworth-Heinemann; 2020. p. 101-116.
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