Analysis of Buying Behavior of Farmers Towards Pesticides in

District Bareilly of Uttar-Pradesh

PROJECT REPORT

Submitted to the

G.B. PANT UNIVERSITY OF AGRICULTURE & TECHNOLOGY,

PANTNAGAR-263145, U.S NAGAR, UTTARAKHAND, INDIA

By

KUBER SINGH
ID No. – 49464

IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE

DEGREE OF

Master of Business Administration(Agribusiness)

June, 2017
 ACKNOWLEDGEMENTS

I avail the highly privileged opportunity to thank all those who extended their hands in
showing the light of success in completing this research work for the award of Master of
Business Administration (Agribusiness) degree.

It is my privilege to study and conduct my research under Dr. Nirdesh Kumar Singh
Assistant Professor, CABM, Pantnagar
Pantnagar, chairman of my advisory committee for his research
insight, illuminating and invaluable guidance, calm endurance, constructive criticism,
continuous
ous encouragement and sustained support dduring
uring the entire course of investigation
and preparation of manuscript.

I empathetically and gratefully acknowledge extent my loyal and venerable thanks to

members of my advisory committee, Dr. Ashutosh Singh, Professor, and Dr. Reetika
Bhatt, Assistant Professor
rofessor for providing proper guidance, critical comments, valuable
suggestions and diligent support lead to timely completion of this work
work.

I am also thankful to faculty members of CABM Dr. Mukesh Pandey, Professor, Dr.
Saurabh Singh, Assistant Professor
Professor, Dr. Jayant Gautam assistant Professor and Mrs.
Sneha Dohare, Assistant Professor for their cooperation and valuable suggestions and
encouragement during the study.

It’s my privilege to extend profuse thanks to Dr. J.P Pandey, Dean, College of Agribusiness
Management and Dr. D. Kumar Kumar,, Dean, College of Post Graduate Studies for providing
necessary administrative support for conductance of this project.

Special thanks to respondents who patiently answered my querie

queriess time and again.

Last but not the least,

t, I would like to convey my thanks to all the batch mates and sseniors for
their utmost cooperationtion and immense help during the entire project work. They really
encouraged me and gave power to overcome all hurdles which I faced.

Pantnagar (Kuber Singh)

June, 2017

i
 CERTIFICATE

We the undersigned members of the project advisory committee of Mr. Kuber Singh, Id. No.
49464 a candidate for the degree of Master of Business Administration(Agribusiness), agree
that the project report entitled “Analysis of Buying Behavior of Farmers Towards Pesticides
in District Bareilly of Uttar-Pradesh” may be submitted in partial fulfillment of the
requirements of the degree.

(Nirdesh Kumar Singh)

Chairman
Project Advisory Committee

(Ashutosh Singh) (Reetika Bhatt)

Member Member
 EXECUTIVE SUMMARY

The present study was under taken on Analysis of buying behavior of farmers towards Pesticides
in the district Bareilly of Uttar Pradesh. The study was conducting on the analysis of farmer’s
usage pattern of pesticides, study of farmers buying behavior for pesticides and the study of
different promotional tool adopted by the company.

A total of 120 farmers and 20 dealers and retailers were the respondent of the study. Most of
farmers using seed treatment pesticides (67%), post emergence herbicides (63%) and contact
insecticides (53%). Majority of farmers was seeking information about pesticides from the dealer
(30%) and followed by the peer’s experience (23%), company officer (20%), demonstration
(15%) and pamphlets (12%). Majority of farmers buy pesticides from the dealers and retailers,
some are was buy from the other sources such as government society. Farmers were purchase
pesticides on credit basis. Farmers mostly purchase pesticides on his prior experience (30%)
followed by price (23%), peer group (19%), brand name (17%) and product feature (11%). If the
required product was not available in the market then the farmers switch for the alternative
product (56%).

According to the respondent response 52% farmers reported that the field visit was most
effective promotional tool and followed by farmers meeting (49%), Jeep campaign (43%),
literature (41%), farmer’s fair (40%) and demonstration (39%).

The majority of farmers buy pesticides on prior experience, dealer influence and price of
product. The most effective promotional tool was field visit of farmers and farmers meeting.

ii
 TABLE OF CONTENTS

Sl. No. PARTICULARS Page No.

ACKNOWLEDGEMENT I.

EXECUTIVE SUMMARY II.

LIST OF EXHIBIT III.

1. INTRODUCTION 1-9

1.1 Background Scenario 1-4

1.2 Work already done 4-8

1.3 Problem Statement 8

1.4 Objectives of study 9

2. Industry Description 10-13

3. METHODOLOGY 14-16

3.1 Research design 14

3.2 Information Required 14

3.3 Area of study 14

3.4 Data Source 14

3.5 Sampling plan 14

3.5.1 Universe 15

3.5.2 Sampling unit 15

3.5.3 Sample size 15

3.6 Sampling techniques 16

3.7 Research instrument 16

3.8 Analysis of data 16

3.9 Duration of study 16

4. Results and discussion 17-26

5. RECOMMENDATION 27

6. REFERENCES 28-30

Annexure 2- 2

VITA
 LIST OF EXHIBITS

Exhibit No. TOPIC Page no.

4.1 Land holding (in hectare) 17

4.2 Farmers using seed treatment pesticides 18

4.3 Types of herbicides used 18

4.4 Types of insecticides used 19

4.5 Types of Pesticide product used 19

4.6 Information collects about pesticides products 20

4.7 Factors motivating purchase of Pesticides 21

4.8 Purchase of Pesticides 21

4.9 Mode of payment 22

4.10 23
Factors affecting buying of pesticides

4.11 Factors influencing farmers purchase behavior 24

4.12 Loyalty towards product 25

4.13 Effective promotional tool for purchase 26

 1. INTRODUCTION

1.1 Background Scenario:

Agriculture is the backbone of India’s economy providing direct employment to about 65 per
cent of working population in the country. Agriculture contributes about 20 percent to GDP of
our country. With such a huge contribution in total GDP and supporting nearly 65% of working
population, Indian agriculture seems to be on the path of development in terms of using modern
agriculture know how and practices. The remarkable increase in agricultural production over the
last four decades is a characteristic feature of India. India occupies the 2nd position in the world
in farm output. It is one of the largest economic sectors and plays an important role in the
development of India, on the socio-economic front. India produces 90,000 metric tonnes of
pesticides a year. India loses nearly 30% of its potential crop to insects, weeds and rodent
attacks. The Pesticides/Crop Protection/Agrochemicals industry plays a crucial role in protecting
crops from damage by weeds, pests, insects and fungus, both before and after harvest. This helps
to increase crop yields, which is important given the rate at which cultivable land is shrinking.

In India pesticide industries is fourth largest and second in Asia after China. Pesticide has played
an important role effectively during the stage of metamorphosis by controlling diseases and
pests. It is noted that the largest consumption of pesticide is on vegetables, cotton, rice and fruits.
India’s rank is 10th in the world in pesticide consumption as its total consumption amounts to
about 800 million tonnes. India is the 13th largest exporter of pesticides and disinfectants in the
world and in terms of volume is the 12th largest producer of chemicals in the world with a value
of US$ 0.6 billion. India is presently the largest manufacturer of basic pesticides among the
South Asian and African countries, with the exception of Japan.

Pesticides, also referred to as agrochemicals, are chemical compounds used for crop protection.
The Pesticide Management Bill 2008 defines “Pesticide” as, “Any substance or mixture of
substances of chemical or biological origin intended for preventing, destroying, repelling,
mitigating or controlling any pest including unwanted species of plants or animal feeds”.

Pesticides are agricultural technologies that enable farmers to control pests and weeds and
constitute an important input when producing a crop (Kateregga 2012; Skevas et al., 2013;

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Jansen and Dubois 2014). Agro-pesticide technologies, including insecticides, fungicides and
herbicides, formed one of the driving forces behind the Green Revolution. Coupled with high-
yielding crop varieties and increased land for crop production, significant yield improvements
were achieved

Since the 1980s, Integrated Pest Management (IPM), the combination of various management
methods (Mason 2003), gained importance in India through favour in policy and extensive
promotion of IPM programs in rice, sugarcane and some vegetables (Singh et al., 2003).

At present, in terms of Agricultural food production, India holds the second position in the
world. But ensuring food security for more than 1.21 billion in Indian populations is Herculean
task, with diminishing cultivable land resource. India’s food productivity is less than the world’s
average food productivity. For example, paddy crop productivity is 4,464 Kg per hectare
whereas world average is 5,618 Kg (Agristat 2009). Low productivity is due to of population
pressure, small and fragmented land holdings, inadequate irrigation facilities, labour scarcity,
depleted soil, deforestation, depleting ground water sources, failure of monsoon, lack of modern
technology, poor facilities for crop storage and lack of farm implements. So, it has become
mandatory for the farmers to adopt the use of high yielding variety of seeds, balanced use of
fertilizers, and judicious use of quantity and quality pesticide, more machinery utilization,
improved package of practices, IPM (Integrated Pest Management) technique, adoption of Bio
Technology, use of Bio Pesticides and use of genetically modified seeds. IPM, an alternative
crop protection technology emphasizes the need for simpler and ecologically safer measures for
pest control to reduce environmental pollution and other problems caused by excessive and
indiscriminate use of the pesticides (Bhardwaj and Sharma 2013). The main components of
IPM are pest surveillance, use of crop varieties resistant to pest, sound cultural practices,
biological control and use of eco-friendly pesticides having less mammalian toxicity. The
pesticide input is the last input in crop production but very important input. The pesticide input
plays the crucial role in ensuring the efficiency of all the associated inputs. Also, it protects the
crop from pest, disease, weed and rats.

Pest is an organism that inflicts severe economical damage to the crops. This covers a wide
variety of organisms such as virus, fungi, bacteria, harmful birds, weeds, nematodes, mites and

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parasites. Worldwide, there are 1,000 species of insects, 50,000 species of fungi, 1,800 weeds
and 1,500 species of nematodes which cause severe damage to crops. In India, crops are affected
by over 200 major pests (Hundal and Singh 2009).

India ranks 10th in the world in pesticide consumption. However, it has been noticed that Indian
consumption of pesticide per hectare is low 600 gms when compared to the world average
consumption of pesticide 3000 gms. The low pesticide consumption has led to crop losses. It is
estimated that India has approximately lost 18 per cent Gross National Agriculture Production of
value Rs. 90,000 crores due to pest attack each year (Durja and Gupta 2009). To avoid crop
losses, farmers have to use pesticide at optimum level in appropriate time. To achieve high yield
without crop losses, farmers need to apply proper pesticide management and they must have
proper knowledge of product and its usages like right pesticide, right time of usage, the right
equipment and the right method of spraying.

Now-a-days farmers have realized the importance and advantages of plant protection chemicals
with the help of State Agriculture department, Agriculture universities, Central Government
sector and primary Agricultural cooperative society serves, that provide the technical information
about the pesticide to the farmer’s society. The private sector like agro chemical companies and
seed companies also play an important role in the dissemination of information about the
pesticides. They can serve the use of new technologies about the pesticides, integrated pest
management, the use of bio pesticides, and Genetically Modified seeds (GM) and precision
farming, contract farming, cooperative farming, storage facility, policulture, adoption of bio
technology, crop rotation and cultivating trap crops, increasing useful natural predators and
parasites, soil streaming, good traditional pest control of panchakavia application technologies,
which may help the farmers to reduce the pest.

In Indian agrochemical industry, pesticide turnover is Rs. 18,000 Cr today and it has a target of
Rs. 30,000 Cr by 2020. Agrochemical companies adopt a holistic approach to farm management,
regarding to increase the farmers‟ awareness through demonstrations and extension services,
propagating better farm practices, ensuring right usage of crop protection chemicals and
providing better storage facilities to reduce post harvest losses. The power of Information

3
Technology (IT) can provide timely advice and guidance for improving productivity, pest related
issues to the farmers.

The important pesticide suppliers are State Government department depots, cooperative
societies, Agricultural universities, Central Government depots and private retail pesticide shops.
In India, 60 per cent of Agricultural inputs like seed, fertilizer, pesticides and equipment are
supplied through retail pesticide shops. Retail pesticide suppliers have been an integral part of
Agriculture for many decades. They assist the Agricultural growers for the production of
Agricultural commodities. Thus, it could be clearly stated that, the role of retailer of pesticides
have significant impact on the farming practices of Indian farmers.

Especially pest and diseases cause severe economic damage in Agriculture production. The
estimated crop loss of is Rs. 90,000 crore in accounts of 101.1 million tons per year by pest and
disease. So, India approximately loses 18 per cent of Gross National Agriculture Production. The
share of loss by each pest amounts to the insects alone accounted for 23 per cent, weeds 28 per
cent, diseases 25 per cent other pests 6 per cent, rat 8 per cent and storage pests 10 per cent.

1.2 Works already done

Kumar et al., (1989) concluded that the adoptions of plant protection measures are varied
among the different categories of farmers. The various practices like control of disease, seed
treatment, soil treatment, rat control, etc., are being advocated without a coherent strategy which
is reflected in differential level of achievement of targets by the plant protection staff in the
district.

Varma (1990) in his study reported that in the village of Ghaziabad on an average 20.5 per cent
farmers used insecticides, 13.6 per cent used fungicides and none had ever used any weedicide.
Availability of easy and cheaper control measures, availability of skilled labour and application
and finance in time influences plant protection use.

Kumar (1994) analysed buying behavior of farmers with respect to pesticides, considering the
factors influencing loyalty of farmers towards dealer and brand. Friends, neighbors and relatives
were the major source of information about dealers. In case of brands, it was extension personnel
of the Department of Agriculture. The price, quality and advertisements of the brand contributed

4
significantly to brand loyalty. Credit availability, advertisements and price of products available
with dealer contributed significantly to dealer loyalty.

Prabuddha (2007) studied the pattern of pest infestation on vegetables and the extent of the use
of pesticides by vegetable growers in 18 villages in Katwa-1 block, Bardhaman district, West
Bengal, India. The study found that the intensity of insect pest infestation on aubergine, pointed
gourd (Trichosanthes dioica), cabbage and cauliflower was greatest during the Rabi season,
followed by the kharif and pre-kharif seasons over the last five years. Most of the farmers
applied pesticides on aubergine and cabbage, but the 36 application rates, number of chemical
groups of pesticides and application frequency adopted by the farmers were more than the
recommended. This practice was most pronounced for aubergine, followed by cauliflower,
cabbage and pointed gourd.

Mahantesh and Singh (2009) Pesticides have substantially contributed for controlling of pests
and increasing crop yields. But over the years there is growing concern about indiscriminate use
of pesticides in agriculture. This paper attempts to understand the farmers’ knowledge and
perceptions of pests and pesticide use in vegetable cultivation and analyzes the pesticide use
practices and the intensity of pesticide use in vegetable cultivation. The result shows that on an
average 41 per cent of the farmers were aware about pesticide hazards in vegetable cultivation.
Most of the farmers (88 per cent) perceived that frequency of insects and disease infestation has
increased over the past 10 years. It was also observed that farmers have not followed adequate
safety measures regarding pesticide application. The high pesticide use cost was observed in
vegetables especially in tomato and brinjal and most of the pesticides belonged to high and
moderate risk chemicals. Increasing farmers’ awareness of pesticide hazards to the environment
and promotion of alternative pest management strategies such as use of bio-pesticides and IPM is
essential for reducing adverse effect on environment.

Bandara et al., (2013) the purpose of this study was to assess farmers’ perception and
willingness to pay for pesticides concerning quality & efficacy, and exploring the socio-
demographic factors that influence the decision to pay for pesticides. A sample of 141 farmers in
Hambanthota and Dambulla regions was selected and information were collected by using a
structured questionnaire. An econometric model called “Binary Logistic Regression” was carried

5
out using six explanatory variables after screening out of twelve variables in the Chi-Square
analysis to identify factors highly likely to affect farmers’ perception and willingness to pay. The
results revealed that four variables namely; age, average monthly income, pest intensity and
action have a significant relationship with farmers’ perception and willingness to pay for
pesticides concerning quality and efficacy. Average monthly income and action have a positive
impact on perception and willingness to pay while age and pest intensity have a negative impact.

Solanki et al., (2013) This study aims to identify the factors that affect consumers purchasing
behavior towards Agriculture inputs like fertilizer, seeds, agrochemicals, oils and lubricants etc.
Buying behavior refers to the act of consumers obtaining and using goods and services and the
decision process that determines these acts. Buying decision is a set of many decisions which
may involve a product, brand, style, quality, dealer, time, price and mode of payment. Price is
the most important consideration at the time of purchasing agriculture inputs followed by
packaging and branding, fair billing and home delivery are considered relatively less important.
An attempt had been made to find out the problems faced by the farmers and this study will also
help to understand the factors affecting the buying behavior of farmers toward Agriculture
inputs.

Jeamponk and Thipsaeng (2014) study that the farmer from 46 households to explore their
level of awareness in chemical pesticide uses, while interview and observation were adopted in
exploring their behavior of chemical pesticide uses. The findings reflected the farmers’ high
level of awareness in chemical pesticide uses in the hazardous effects of the chemical to human
and environmental health, while their behavior of chemical pesticide uses explained their
awareness paid to the right way of using pesticides, for instance reading the direction on the
label, keeping children and animals away from the area of pesticide mixing, covering body with
clothes and wearing hat and mask, no smoking, eating or drinking during pesticide spray or
standing in windward direction.

Gore and Aryan (2015) the present study was undertaken with objectives to assess the farmers’
perception on using, handling of pesticides by farmers results revealed that 94% of farmers use
chemical pesticide, and majority of farmers had greater influence of pesticide vendors’ advice
regarding pesticide use. It was found that sample farmers had limited knowledge about the

6
proper guidelines of pest management and recommendation. Results showed that 60% of sample
respondents agreed that organic farming or IPM is better options to chemical pesticide in brinjal.
But the same time, farmers of the study area are reluctant to switch over from chemical pesticide
to improved alternative practices. Regarding capacity building, it was found that 57% of the
farmers did not attend any training on organic farming. Data reflected that 90% of sample
farmers were aware about safe use of pesticide and also 95% of sample respondents were aware
with the fact that exposure to pesticide has adverse health effects. The result implies that sample
farmers were informed about alternatives or component of alternatives to chemical pesticide such
as bio-pesticide (32%), organic farming (31%), crop rotation (18%), & cultivating crop mixture
(12%). It was found that most of the farmers (87%) had an opinion that chemical pesticides are
harmful for the environment.

Banerjee et al., (2015) In the present study alpha-cypermethrin (46%) was the most commonly
used pesticide followed by methyl parathion (25.6%), imidacloprid (16.4%), dichlorvos (7.8%)
and phorate (4.2%). The farmers used to store pesticides mostly in cowshed (48.4%) followed by
storeroom (29.6%). During spraying of pesticides, farmers experienced headache (29.8%)
followed by nausea (26%), burning sensation in eyes (9.8%), cough (9.2%), muscle cramps
(2%). Regarding the personal protective measures taken by the farmers for spraying, covering
nose, mouth with cloth combined with bath after spraying was the most common practice (27%).
When asked about suggested actions to be taken if anybody becomes sick following exposure to
pesticides, 86% of farmers prefer consulting a doctor.

Prashar et al., (2015) Present investigation was undertaken to study the pattern of pesticide
usage, management, their health effects on farmers and the perception of farmers’ regarding the
same. A survey was conducted among 100 farmers in cauliflower and tomato cultivating areas of
district Faridabad, Haryana, India from December 2012 to February 2013. Cypermethrin (62%)
and Profenofos (58%) were found as the most popular insecticides while Captan (74%) and
Carbendazim (53%) were the most widely used fungicides by the farmers in this area. However,
biological pesticides like Azadirachtin (34%) and Bacillus thuringiensis (16%) were also
observed to have gained considerable acceptance among the vegetable cultivators though they
were reported less efficient in comparison to chemical pesticides. Manual application was
reported as the method of choice for pesticide application by 70% farmers and 56% of the

7
farmers confirmed that no requisite safety measures and precautions were adopted while
applying the pesticides.

Tande et al., (2014) studied farmers buying behavior on pesticide products and reported that,
past experience was an important reason for using a pesticide. 13 Farmers might consider their
purchasing actions if they are interested in reducing their production costs and buying pesticides
at the best price. Farmers might also consider their reasons for using pesticides. Past experience
was an important reason for using a pesticide. Perhaps farmers should make better use of
educational influence to assure the pesticides were best suited for the job required.

Moulasab et al., (2016) Plant protection chemicals have substantially contributed for controlling
of pests and diseases for increasing crop yields by reducing losses. Plant protection chemicals
use has resulted in various socioeconomic and environmental implications. The result shows that
on an average 35 per cent of the farmers were aware about plant protection chemicals hazards in
vegetable cultivation. Most of the farmers (80%) perceived that frequency of insects and disease
infestation has increased over the past 10 years. It was also observed that farmers have not
followed adequate safety measures regarding plant protection chemicals application. The high
plant protection chemical use cost was observed in vegetables especially in Chilli, Brinjal,
Tomato, Okra etc., and most of the plant protection chemicals belonged to high and moderate
risk chemicals.

1.3 Problem Statement:

In today’s competitive age of attracting and retaining the new customer is really a challenging
task and pesticide industry is not different from it. The increasing cut throat competition in this
sector has made farmers more informed and they are having various option. The way he thinks,
the way he practice and the way he seeks information is also changing. In the study area farmers
are not aware about which pesticides are required for which pests, insects and diseases. Farmers
are facing the problem in selection of pesticides because of they are not much aware about the
different pesticides available in the market. A successful marketing strategy begins with the
targeting of specific audience by understanding the demographic characteristics, lifestyle and
consumer buying behaviors.

8
The researcher wants to know the buying behavior of farmers towards pesticide and the
underlying important factors which influence farmers while making pesticides purchase decision.
He also wants to know the major market players of pesticide industry and different promotional
strategy adopted by pesticide companies. The purpose of studying the buying behavior of
farmers towards pesticides is to fulfill customer needs. Only by doing so will the marketing
enterprise continually and consistently meet its own needs. Keeping the aforesaid things in mind
the study was planned with the following objectives:

1.4 Objectives of study:

1) To analyse the pesticides usage pattern of farmer in study area.

2) To study the buying behavior of farmer towards pesticides in study area.
3) To study the different promotional strategy adopted by pesticide company.

9
 2. INDUSTRY DESCRIPTION:

India ranks are 10th in the world in pesticide consumption. However, it has been noticed that
Indian consumption of pesticide per hectare is low 600 gms when compared to the world average
consumption of pesticide 3000 gms. The low pesticide consumption has led to crop losses. It is
estimated that India has approximately lost 18 per cent Gross National Agriculture Production of
value Rs. 90,000 crores due to pest attack each year (Durja and Gupta 2009). To avoid crop
losses, farmers have to use pesticide at optimum level in appropriate time. To achieve high yield
without crop losses, farmers need to apply proper pesticide management and they must have
proper knowledge of product and its usages like right pesticide, right time of usage, the right
equipment and the right method of spraying. The crop protection market has experienced strong
growth in the past and is expected to grow further at approximate 12% p.a. to reach $ 6.8 billion
by FY17. The growth would be largely driven by export demand which is expected to grow at
15-16% p.a, while domestic demand is expected to grow at 8-9% p.a. Biopesticides, which
currently represent only 4.2% of the overall pesticide market in India, are expected to exhibit an
annual growth rate of about 10% in the coming years. The Indian market is different from the
global industry in terms of consumption patterns. Globally, herbicides constitute about 44% of
the crop protection market followed by fungicides at 27%, insecticides at 22% and others at 7%.

2.1 Industry Structure:

In India, there are about 125 technical grade manufacturers (10 multinationals), 800 formulators,
over 145,000 distributors. 60 technical grade pesticides are being manufactured indigenously.
Technical grade manufacturers sell high purity chemicals in bulk (generally in drums of 200-250
Kg) to formulators. Formulators, in turn, prepare formulations by adding inert carriers, solvents,
surface active agents, deodorants etc. These formulations are packed for retail sale and bought by
the farmers.

2.2 Key Segments

2.2.1 Insecticides: Insecticides are used to ward off or kill insects. Consumption of insecticides
for cotton has come down to 50% from 63% of total volume after introduction of BT cotton.

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2.2.2 Fungicides: Fungicides are used to control disease attacks on crops. The growing
horticulture market in India owing to the government support has given a boost to fungicide
usage. The market share of fungicides has increased from 16% in 2004 to 20% in 2009.

2.2.3 Herbicides: Herbicides are the fastest growing segment of agrochemicals. Their main
competition is cheap labor which is employed to manually pull out weeds. Sales are seasonal,
owing to the fact that weeds flourish in damp, warm weather and die in cold spells.

2.2.4 Bio-pesticides: Bio-pesticides are pesticides derived from natural substances like animals,
plants, bacteria and certain minerals. Currently a small segment, biopesticides market is expected
to grow in the future owing to government support and increasing awareness about use of non-
toxic, environment friendly pesticides.

2.2.5 Others: Plant growth regulators, Nematocides, Rodenticides, Fumigants etc. Rodenticides
and plant growth regulators are the stars of this segment.

2.3 Competitive Landscape

The Indian agrochemicals market is highly fragmented in nature with over 800 formulators. The
competition is fierce with large number of organized sector players and significant share of
spurious pesticides. The market has been witnessing mergers and acquisitions with large players
buying out small manufacturers. Key market participants include United Phosphorus Ltd, Bayer

11
Cropscience Ltd, Rallis India Ltd, Gharda Chemicals Ltd, Syngenta India Ltd, BASF India Ltd,
etc. Top ten companies control almost 80% of the market share. The market share of large
players depends primarily on product portfolio and introduction of new molecules. Strategic
alliances with competitors are common to reduce risks and serve a wider customer base.

2.4 Key Trends

2.4.1 Market Trends: Focus on developing environmentally safe pesticides by the industry as
well as the Government. The Department of Chemicals has initiated a nationwide programme for
“Development and production of neem products as Environment Friendly Pesticides” with
financial assistance from United Nations Development Programme (UNDP). Focus by larger
companies on brand building by conducting awareness camps for farmers and providing
complete solutions. Increase in strategic alliances among large players for greater market reach
and acquisitions of smaller companies globally to diversify product portfolio. For example:
Rallis has a marketing alliance for key products with FMC, Dupont, Syngenta, Bayer and Nihon
Nohayaku. In addition, UPL has had a series of small acquisitions globally to enter new
geographies and gain product expertise.

2.4.2 Technology Trends: Increased R&D expected for development of new molecules and low
dosage, high potency molecules focus on R&D in bio-pesticides segment with increasing
preference for environmentally safe products in the market

2.5 Key Challenges:

1. High R&D costs: R&D to develop a new agrochemical molecule takes an average of 9 years
and ~ USD 180 Mn Indian companies typically have not focused on developing newer molecules
and will face challenges in building these capabilities, while continuing to remain cost
competitive.

2. Threat from Genetically Modified (GM) seeds: Genetically modified seeds possess self-
immunity towards natural adversaries which have the potential to negatively impact the business
of agrochemicals.

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3. Need for efficient distribution systems: Since, the number of end users is large and
widespread, effective distribution via retailers is essential to ensure product availability. Lately,
companies have been directly dealing with retailers by cutting the distributor from the value
chain thereby reducing distribution costs, educating retailers on product usage and offering
competitive prices to farmers.

4. Support for Integrated Pest Management (IPM) & rising demand for organic farming:
Promotion of IPM, zero budget farming and usage of bio-pesticides by Indian Government and
NGOs is gaining momentum. With increasing demand for organic food, farmers in certain states
like Karnataka have reduced chemical usage and have adopted organic farming. Agrochemical
companies will have to tackle the rising environmental awareness and address concerns on
negative impact of pesticide usage.

5. Counterfeit Products: The spurious pesticides market size in India is estimated to be USD
233 Mn in 2009. This negatively impacts the revenues of the organized sector.

2.6 Key Opportunities

1. Scope for increase in usage: With ~35-40% of the total farmland under crop protection, there
is a significant unserved market to tap into. By educating farmers and conducting special training
programmes regarding the need to use agrochemicals, Indian companies can hope to increase
pesticide consumption.

2. Huge export potential: The excess production capacity is a perfect opportunity to increase
exports by utilizing India’s low cost producer status.

3. Patent expiry: Between 2009 and 2014 many molecules are likely to go off patent throwing
the market open for generic players. The total viable opportunity through patent expiry is
estimated at over USD 3 Bn.

4. Product portfolio expansion: Threats like genetically modified seeds, Integrated Pest
Management, organic farming etc. can be turned into opportunities if the industry re-orients itself
to better address the needs of its consumers and broadens its product offering to include a range
of agri-inputs instead of only agrochemicals.

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 3 METHODOLOGY

To attain the objectives of this study following research methodology was adopted.

3.1 Research Design

Descriptive research design was used for the study as it was enable us to identify the various
attributes affecting the farmers buying behavior.

3.2 Information Required

In this study all the information was gather with the help of farmers who use pesticides for crop
protection. In this study basically the information is required related to the land holding capacity,
types of pesticides they used, which company pesticides they use, who recommend them and
how they purchase the pesticides etc.

3.3 Area of study

There are 15 blocks in district Bareilly. Nawabganj and Bhadpura block of district Bareilly was
choosen as area of study. These two block was selected in the study because of the market in
these block was not well developed that’s by farmers was facing the problem related to selection
and purchase of right pesticides.

3.4 Data Source

Both primary and secondary data was collected to accomplish this study.

Secondary data: The data was collected from journals and magazines.

Primary data: The primary data for the study was obtained through personal interview of the
farmers. For the collection of primary data open and close ended questionnaire was used.

3.5 Sampling plan

The following sampling plan was taken in this study;

14
3.5.1. Universe

All farmers, dealers and retailers of Pesticides of district Bareilly was constitute the universe for
the study.

3.5.2. Sampling Unit

Farmers, dealers and retailers of pesticides of Nawabganj and Bhadpura block of district Bareilly
was selected as the sampling unit for the study.

3.5.3. Sample Size

To conduct the study 60 farmers and 10 dealers and retailers from each block was selected.

No. of farmers 60×2 = 120 farmers

No. of dealers 10×2 = 20 dealers and retailers of Pesticides

Sample size of 140 was required to conduct the study.

Bareilly

Block 1(B1) Block 2(B2)

66 Nagar Panchayat 86 Nagar Panchayat

3 Nagar Panchayat 3 Nagar Panchayat

20 Farmers from each Nagar 20 Farmer from each Nagar

Panchayat Panchayat

15
3.6 Sampling Technique

Purposive sampling method was used to selection of block from Bareilly district. Researcher was
select two blocks out of 15 blocks. Random sampling was used to selection of Nagar Panchayat
from these two blocks. Convenience sampling method was used for the selection of farmers and
dealers so that relevant information can be gathered.

3.7 Research Instrument

Personal Interview of farmers was conducted with the help of structured questionnaire.
Questionnaire having both types of questions open ended and close ended type questions.

3.8 Analysis of Data

Basic statistical tool was used for data analysis such as percentage and average used for the
analysis of data. The project was carried out to accomplish the stated objectives.
3.9 Duration of Research
Research was conducted for a span of 2 months i.e. from 11thMarch, 2017 to 11th May, 2017.

16
 4. RESULTS AND DISCUSSION

The present study entitled “Analysis of buying behavior of farmers towards Pesticides in the
district Bareilly of Uttar Pradesh”. The results of the investigation showed the following results.

4.1 Farmers Pesticides usages pattern:

The present study was conducted on district Bareilly of Uttar Pradesh. In this reason pesticides
usages pattern of farmers are written as following.

4.1.1 Land holding (in hectare):

In the study area researcher was observed that the 47% farmers were having 1-2 hectare land,
30% farmers having 2-4 hectare land, 13% farmers having greater than 4 hectare land and 10%
farmers having less than 1 hectare land. Researcher was observed that the maximum farmers
having 1-2 hectare land and followed by 2-4 hectare land holding farmers.

13% 10%

<1 Hectare
1-2 Hectare

30% 2-4 Hectare

47% >4 Hectare

Exhibit 4.1 Land holding (in hectare)

4.1.2 Farmers using seed treatment pesticides:

In the study area researcher was found that the 67% farmers using seed treatment pesticides and
33% farmers were not using any seed treatment pesticides. In this reasons farmers were mostly
using Carbendazim as a seed treatment before showing of seed in the field. This is a fungicide
that will reduce the seed borne disease.

17
 33%
Yes
No

67%

Exhibit 4.2 Farmers using seed treatment pesticides

4.1.3 Which type herbicides you use:

According to the respondent response 63% farmers were using post emergence herbicides and
37% farmers using pre emergence herbicides. Post emergence herbicides are those herbicides
that are used after germination or emergence of crops. Post emergence herbicides are applied 25-
30 days after germination of crops. Pre emergence herbicides are applied before emergence of
crops and after showing of crop seeds. Farmers were mostly preferred post emergence herbicides
because of it apply after germination of herbs in the crops that will reduce the cost of herbicides.

37%
Pre emergence
Post emergence
63%

Exhibit 4.3 Which type herbicides you use

18
4.1.4 Which types of insecticides do you use:

According to the respondent respons 53% farmers was using contact insecticides and 47% was
using systemic insecticides. Farmers were mostly preferred contact insecticides because was
show the immediate result.

47% Systemic
53% Contact

Exhibit 4.4 Which types of insecticides do you use

4.1.5 Which Pesticide product do you use:

In the study area 36% farmers were using insecticides, 27% using herbicides, 15% fungicides,
7% using rodenticides and 15% using others pesticides. Mostly farmers were using insecticides
because of the more insect attack on crops. Others pesticides includes bactericides and viricides
etc.

15%
Insecticides
7% 36% Fungicides
Herbicides
Rodenticides
27%
e) Others
15%

Exhibit 4.5 Which Pesticide product do you use

19
4.2 Farmer’s buying behavior towards pesticides:

In the study area pesticides buying behavior of farmers was written as following.

4.2.1 From where you get to know about pesticides products:

According to the respondent response 30% farmers was get the information about pesticides
from dealer advice, 23% farmers were get from peer’s experience, 15% farmers were get from
the demonstration, 20% farmers were get from the company officer and 12% farmers were get
from the pamphlets provided by the company.

12%
Advise of dealer
30%
Peer’s experience
20%
Demonstration
Company officer
15% 23% Pemphlets

Exhibit 4.6 From where you get to know about pesticides products

4.2.2 What are the factors that motivate you to purchase Pesticides:

According to the respondent response 53% farmers were purchase the pesticides when
occurrence of disease or presence of pest in the crop, 28% farmers were take preventive measure
from the pest and 19% farmers were buy pesticides when they dissatisfied with the current pest.
Mostly farmers buy pesticides when pest or disease attacks on crop plant.

20
 19%
Occurrence of disease/presence
of pest
Preventive Measure
53%
28% Dissatisfaction with current pest

Exhibit 4.7 What are the factors that motivate you to purchase Pesticides

4.2.3 From where do you purchase Pesticides:

These reason 44% farmers were purchase pesticides from the distributor or dealer, 34% farmers
were purchase pesticides from the retailers and 22% farmers were buy from the other shops.
Farmers are mostly purchase pesticides from the dealer and retailer because they provide the
pesticides on the credit basis.

22%
Distributor/Dealers
44%
Retailers
Others
34%

Exhibit 4.8 From where do you purchase Pesticides

4.2.4 How you pay for pesticides:

In the study area 64% farmers were purchase pesticides on the credit basis and only 36% farmers
were purchase pesticides on the cash basis. Farmers pay some amount of pesticides to the dealer
and retailer and remaining amount will pay after sometime.

21
 36%
Cash
Credit
64%

Exhibit 4.9 How you pay for pesticides

4.2.5 How do you prioritize the following factors that affect the buying of pesticides: rate
from 1 to 4 (1 most important and 4 least important)

Researcher was observed that the 30% farmers were buy pesticides product on the basis of prior
experience. Other 23 % farmers were buying pesticides on the basis of price of pesticides, 19%
farmers were purchase on the basis of recommendation of peer group. 17% farmers were
buying on the basis of brand name of pesticides product and 11% farmers were buying on the
basis of feature of pesticides product. It means that buying behavior of farmers was mostly
effected by the prior experience of farmers and price of pesticides products. Farmer’s prior
experience and price of pesticides is one of the most important factors for taking buying decision
of pesticides. Prior experience gives the knowledge about the product that by its play a important
role in buying of pesticides.

22
 11%
17%

Brand
19% Price
Prior Experience
23% Peer group
Product feature

30%

Exhibit 4.10 How do you prioritize the following factors that affect the buying of Pesticides.

4.2.6 From dealers point of view what influence farmers purchase behavior

According to the respondent response 14% farmers reported that the they purchase pesticides
own pesticides knowledge, 17% farmers reported influence, 23% farmers reported less influence
and 46% farmers were reported that the own technical knowledge not play any important role on
buying of pesticides product. 51% farmers were reported that the dealer push important factor on
buying, 25% dealer reported influence, 17% reported less influence and 7% dealer or retailer
reported that the dealer push important factor on buying of pesticides.

23
 60%
51%
50% 46%
43%
40% 35%
31% 30% Most influencing
30% 25%
23% Influence
19%
20% 17% 17% 16% Less influnce
14% 15%
11% Least influence
10% 7%

0%
Their own technical Dealer Push Company field staff Literature
knowledge

Exhibit 4.11 From dealers point of view what influence farmers purchase behavior

4.2.7 If the product required is not available then what you do:

In the study area 56% farmers were going for alternative available in the market because of
farmers don’t have any other option. 36% farmers were waiting for the required product and only
8% cancel the purchase of pesticides. Farmers were going for alternative because of the
pesticides is the most important agriculture input for crop protection.

8%

36%
Wait for required one
Go for alternative
Cancel the Purchase

56%

24
Exhibit 4.12 If the product required is not available then what you do

4.3 Which of the following promotional tool most influenced you for purchasing the
pesticides

According to the respondent response 40% farmers reported that farmers fair was the most
effective tool for gathering the information about the pesticides. 27% farmers reported that the
farmers fair was effective tool, 20% farmers reported that the farmers fair give the less important
information about the pesticides product and 13% farmers reported that the farmers fair was least
effective tool for promoting the pesticides product. 43% farmers reported that the Jeep campaign
was important for promoting the product, 32% reported that the effective tool, 19% farmers
reported that the less effective and 6% farmers reported that the jeep campaign was least
effective tool for promoting the pesticides products. Demonstration of pesticides product was
reported as an effective tool for promotion of product by 39% farmers, 28% farmers was
reported effective tool, 20% farmers reported less effective and 13% farmers was reported least
effective tool for promotion of product. 49% Farmers reported that the farmers meeting was most
effective tool, 32% farmers reported that the effective tool, 12% farmers reported less effective
and 7% farmers reported that the farmers meeting was least effective tool for promoting the
pesticides product. 41% farmers reported that literature was most effective tool, 35% farmers
reported effective tool, and 15% reported that the less effective tool and 9% farmers reported that
the literature was least effective tool for promoting the pesticides product. Field visit was
reported that the most effective promotional tool by 52% farmers, 30% farmers reported
effective tool, 13% farmers reported less effective and 5% farmers was reported that the least
effective promotional tool.

I observed that the most effective promotional tool was field visit of farmer. Field visit was play
an important role in buying decision of pesticides product because of seen in believing is most
important factor of buying decision making. Promotional tool field visit was followed by
farmers meeting, jeep campaign, literature, farmers fair and farmers meeting.

25
 60%
52%
49%
50%
43%
40% 39% 41%
40% 35%
32% 32% 30%
27% 28%
30%
Most effective
20% 19% 20%
20% 15% Effective
13% 13% 12% 13%
9% Less effective
10% 6% 7%
5%
Least effective
0%

Exhibit 4.13 Which of the following promotional tool most influenced you for purchasing
the pesticides

Farmers field visit and Farmers meeting was observed as most effective promotional tool for
promoting the pesticides product in market.

26
 5 RECOMMENDATIONS FOR ACTION

1. Company should focus on pre emergence herbicides and systemic insecticides. Farmers are
mostly using post emergence herbicides and contact insecticides that mean they are less aware
about the pre emergence herbicides and systemic insecticides.

2. It is recommended that the company should focus on building brand image and price quality
relationship of product in the market.

3. The company staff should focus on the creating product awareness and distribution of product
literature among farmers as Farmers were mostly buying the product on the basis of dealer
recommendation.

4. They should make the proper product availability in market. If the product is not available in
the market farmers switch to the alternative product that is switching cost for the company.

5. They should more focus on the promotion of product on the market with the help of other
promotional tool rather than the field visit and farmers meetings.

27
 6 REFERENCES

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Agriculture, Govt. of India.

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protection and their effects on health & environment in western Uttar Pradesh. Journal of
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Hundal, A.B.S. and Singh, R. (2009) Journal of Pesticide Marketing, the Indian Scenario.

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Moulasab; Agnal, Mallikarjun B.; Kushal; Satihal D.G.; Patil S.S. and Nagesh (2016) A
Study on Farmers Perception and Use of Plant Protection Chemicals on Vegetable
Cultivation in Yadagiri District of Hyderabad Karnataka. Advances in Life Sciences
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Prashar, P.; Tyagi, H. and Gautam, T. (2015) Survey of pesticide use patterns and farmers’
perceptions: A case study from cauliflower and tomato cultivating areas of district
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30
 Annexures 1

QUESTIONNAIRE

1. Farmers Details

Name of farmer…………………..

Father Name…………………………..

Address…………………………………

Mobile No……………………………

2. Farmer’s pesticides usages pattern

2.1 Land holding (in hectare)

a)<1 b) 1-2

c) 2-4 d) >4

2.2 Farmers using seed treatment pesticides

a) Yes

b) No

2.3 Which type herbicides you use?

a) Pre emergence

b) Post emergence

2.4 Which types of insecticides do you use?

a)Systemic

b) Contact

2.5 Which pesticide product do you use?

a) Insecticides

b) Fungicides

c) Herbicides

d) Rodenticides

iv
e) Others

3. Farmer’s buying behavior towards pesticides

3.1 From where you get to know about pesticides products

a) Advise of dealer

b) Peer’s experience

c) Demonstration

d) Company officer

e) Pemphlets

3.2 What are the factors that motivate you to purchase pesticides?

a) Occurrence of disease/presence of pest

b) Preventive Measure

c) Dissatisfaction with current pest

3.3 From where do you purchase Pesticides?

a) Distributor/Dealers

b) Retailers

c) Others

3.4 How you pay for pesticides

a) Cash

b) Credit

3.5 How do you prioritize the following factors that affect the buying of pesticides? Rate
from 1 to 4 (1 most important and 4 least important)

a) Brand

b) Price

c) Prior Experience

d) Peer group

v
e) Product feature

3.6 From dealers point of view what influence farmers purchase behavior?

Factors 1 2 3 4 5
Their own technical knowledge
Dealer Push
Company field staff
Government recommendation
Literature

3.7 If the product required is not available then what you do.

a) Wait for required one

b) Go for alternative

c) Cancel the Purchase

4. How do you prioritize the following promotional tools which influence you the most?

Rate from 1 to 4(1 most important 4 least important)

Promotional activity 1 2 3 4
Farmers fair
Jeep campaign
Demonstration
Farmers meeting
Literature
Field visit

vi
 VITA

Kuber Singh author of this manuscript was born on April 5, 1991 in Bareilly, Uttar Pradesh. He
had completed his High School and Intermediate examination from UP Board in 2007 and 2009
respectively. Further, he took admission in S.V. Pant University of Agriculture and Technology
Modipuram, Meerut in 2009 and obtained the degree of Batcher of Technology(Biotechnology)
in July 2013 and Master of Technology 2015. Thereafter, he got selected for MBA
(Agribusiness) programme in College of Agribusiness Management (CABM), G.B. Pant
University of Agriculture and Technology, Pantnagar through CMAT examination in 2015. In
the month of December, 2017, he got placed in Chambal Fertilizers and Chemical limited as
Trainee Marketing Officer.

Permanent Address:

Kuber Singh
S/O Mr. Kirat Dev
Village-Nakatiya, Post-Dalel Nagar, Tehsil-Nawabganj
District-Bareilly (Uttar Pradesh) 262406
Mob. 9536859478
Email:kubersingh0504@gmail.com