Swot analysis of agro-chemical distribution system in Thrissur district

Abstract

The study on ‘SWOT Analysis of agro-chemical distribution system in Thrissur district’ was undertaken with the following objectives: 1. to analyse the strengths, weaknesses, opportunities and threats of agro-chemical distribution system, and 2. to suggest a strategy for streamlining it as a farmer friendly agro-chemical distribution system. The study was conducted in Pazhayannur and Wadakkencherry blocks in Thrissur district. Pazhayannur block was having the highest area under rice cultivation and the Wadakkencherry block was having the highest area under banana and vegetable cultivation. A ‘Padasekharam’ having highest area of rice cultivation and a ‘Harithasangam’ and a ‘Self help group’ having the highest area of banana and vegetable cultivation were selected respectively from these blocks. Thus, the ‘Pazhayannur padasekhara samiti’ from Pazhayannur panchayath in Pazhayannur block, Malakom Harithasangam and a KHDP Self Help Group from Thekkumkara panchayath in Wadakkencherry block were selected for the study. The sample group of farmers was fixed to 100, in which 40 farmers from a ‘Padasekharam’ and 30 each from a ‘Harithasangam’ and a ‘Self Help Group’. 25 co-operative outlets and 20 private traders from these blocks were also surveyed. The study made an explorative search in to the strengths, weaknesses, opportunities and threats of agro-chemical distribution system. Based on the distributors response towards agro-chemical distribution, the most popular fertiliser manufacturers among co-operative outlets and private traders were ‘FACT’ and among plant protection chemicals ‘Bayer India’, ‘Rallis India’ and ‘BASF’ were the most popular manufacturers. All the distribution outlets pointed out that they were providing credit facility to farmers for purchasing inputs. While the co-operatives were helping the farmers in marketing their produce. The distribution outlets used to recommend products to farmers and the major factor behind the recommendation was the availability of products in the outlets. In the opinion of farmers, majority of the respondents were using both organic materials and agro-chemicals for increasing crop yield and protecting the crops. Decision regarding the quality and type of agro-chemicals to be applied in the field was taken by the influence of the salesman. The major source of information to the respondents was private trader followed by Krishi bhavan. The farmers preferred private traders as their source of purchase and the major factor influenced the source preference of farmers towards the distribution outlet was credit availability. Majority of the respondents revealed that co-operative outlets were at a distance of more than 6 kms. while private traders were at a distance between 2 - 4 kms. SWOT Analysis of co-operative distribution outlets revealed that the major strengths which were existing in the system are credit facility to farmers, good farmer-supplier relationship and helps the farmer in marketing their produce. The major weaknesses were supply of subsidised products only and lack of promotional efforts. The identified opportunities which have to be tapped were insurance scheme for farmers and bio-fertliser supply. The threats for the co-operative distribution outlets in their view were interest is to earn high margin and supply of adulterated products. Strengths, weaknesses, opportunities and threats were identified for private traders also. The major strengths were credit facility to farmers, good farmer-supplier relationship and inform farmer about new products. Lack of sale point training was the major weakness to private traders among the other weaknesses. The identified opportunities were insurance scheme for farmers and bio-fertiliser supply and the threats were interest is to earn high margin and supply of adulterated products. From the results obtained from the SWOT Analysis, suitable strategies are formulated for both co-operative distribution outlets and private traders. The suggested strategy for co-operative outlets is to maximise strengths and opportunities and to minimise weaknesses ie., SO-W (maxi-maxi-mini) strategy. Similarly, probable strategy is suggested for private traders by taking into consideration of their strengths, opportunities and weaknesses. The strategy for the private traders is also SO-W strategy (maxi-maxi-mini) strategy, ie. to maximise strengths and opportunities and to minimise weaknesses.