Tuesday, October 29, 2013

Sluggish growth of Soluble Fertilizer market : At this juncture we all agree that water soluble fertilizer adoption has been very limited outside Maharashtra. There are several reasons, but one of them is possibly "abrupt Maximum Retail Pricing" (MRP). On a product like 19-19-19 in 1 kg packing, which was sold at Rs 90 to the farmer at many places in Maharashtra, is bearing a MRP of Rs 200 in Vidharbha and rest of states of India. Even bigger brands follow this practice despite the fact that they sell to the network at a thin margin. End users, i.e. farmers are charged between 110 - 200 depending upon their status and knowledge of prices. Most of the they are charged as per MRP. Such a high price for 19-19-19 completely dilutes cost benefit and reluctance to use grows infinitely. Until re packers (importers) don't stop writing as MRP what the distribution network wants, farmers will not find it feasible to apply.

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