How To Start Fertilizer Distribution Business

Fertilizer industry in India is highly organized. Any individual can initiate a fertilizer distribution business as small, medium and large scale basis. Small distributors generally operate within the district. Large distributors play within the state, sometimes in more than one states.

The world uses more than 85 million tons of fertilizer a year just on cereal crops such as corn, paddy, and wheat. In our country over 70% of the total population live in villages. There are states like U.P, M.P, Bihar, Orissa and Rajasthan where rural population varies from 80 to 90 percent. Agriculture and agriculture related activities contribute to about 75% of the income in rural areas.

Fertilizer Distribution Business Market

Fertilizer is a steady business that shows no signs of fading. The growth is mainly driven by the increase in global population which is increasing the food demand. Fertilizers are extensively being used to improve per hectare production of crops that can be used for food and industrial applications. If you like the idea of making

Agriculture and agriculture related activities contribute to about 75% of the income in rural areas. Fertilizer is a steady business that shows no signs of fading. The growth is mainly driven by the increase in global population which is increasing the food demand. Fertilizers are extensively being used to improve per hectare production of crops that can be used for food and industrial applications. If you like the idea of making a profit by helping people work with the soil, you might enjoy being a part of the fertilizer industry.

License & Registration For Fertilizer Distribution Business

As a start-up company first, decide whether you want to run a sole proprietorship, a partnership, an LLP, a Pvt Ltd or a Ltd company. Apply for a license from the states or local authority in which you plan to do business. West Bengal state, for example, requires a marketing license to do business in the entire state from the directorate of agriculture govt. of west Bengal. Otherwise, you can also obtain a marketing license from the local authority to do business in a particular block or subdivision.

To get a marketing license you should have a trade license from the local body of your store and go down. Apply for a “certificate of source” (as per f.c.o) means a certificate given by the manufacturer, importer, pool handling agencies or as the case may be, wholesale dealer indicating therein the source from which fertilizer for the purpose of the sale is obtained.

Follow the norms of Fertilizer Control Order. To get a marketing license you should have a trade license from the local body of your store and go down. Apply for a “certificate of source” (as per f.c.o) means a certificate given by the manufacturer, importer, pool handling agencies or as the case may be, wholesale dealer indicating therein the source from which fertilizer for the purpose of the sale is obtained.

You will need to apply to obtain a certificate of registration under this Order for selling Fertilizers, whether in wholesale or retail or both to the registering authority or, as the case may be, for industrial use through registered post to the controller in Form A, in duplicate, together with the fee prescribed under clause 36 and a certificate of source, “in Form O.

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Fertilizer Distribution Business Plan

Write a business plan for your fertilizer distribution business. A well-written plan will help you to convince investors that your company is worth putting money into. It will also help you to make the specific plan. What kind of fertilizer you want to choose for your distribution business such as chemical or organic fertilizer or both? What will be your geographic region you want to cover? How are you going to compete with established distributors?

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Fertilizer Distribution Business Operation

Find suppliers willing to do business at a suitable price in your area. Obtain quality products at a reasonable price from a reliable source. Additionally, you can go for import also in the case of bulk purchase. The source you choose will depend on your start up budget.

Store fertilizers separate from any other component in dry conditions. In addition, you must pay attention to keep the floor damp proof. Provide pallets to keep the drums or bags off the floor.

How you distribute your products and deliver your services can affect your cost and your client satisfaction. Arrange appropriate transport facility. Choosing the correct mode of transport means striking a balance between time and budgetary constraints.

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 Fertilizer Distribution Business Marketing Ideas

Define your customer base. You can sell fertilizers to farmers, garden stores, nurseries and Krishi Samiti groups directly from your store. To make your distribution business a profitable venture it requires a strong dealer network. Build an effective sales team for your distribution business. Additionally, product training plays an important role in this business. The more you grow the product awareness, you will achieve more sales volume.

Additionally, sales promotion is an important aspect in this business. Contact the dealers and retailers in your area and let them know how you will give them a better product at a better price and better schemes than their current distributors.