Effective network is a key factor in this because through this network, material in sound condition becomes available to farmers close to their seat of requirement.

Fertiliser distribution became free in India in 1968. At that time we had only 41,000 cooperative outlets selling fertilisers. Within five years, this number became 86,000 and further went upto 1,01,800 by 1978. In next 10 years, registered dealers were 1,75,000 and by 1998 it went up to 2,71,900.

India has more than 6,27,000 villages. Available network of registered dealers, which includes manufacturers, importers, state level cooperatives, wholesalers, distributors, retailers, etc. is 2,71,900 which means that one opening is available for every 2.5 villages. But this average figure is misleading because situation varies from state to state, mortality on year to year basis is high, many points are only registered but there is no trading and growth of cooperatives is pretty poor.In 30 years, cooperative network has gone up from 41,000 to 70,200 whereas private network is now 2,01,700.

As is seen in Punjab, Tamil Nadu, Gujarat, Maharashtra, a proper balance in supply of fertilisers through network helps in increasing demand and consumption of fertilisers.

Therefore that should be our national target.In our anxiety to go 400 million tonnes of foodgrains production in the next 10 years, one crucial factor will be taking fertiliser use to a level of 80 million tonnes from current 40 million tonnes. The extra 40 million tonnes, if judiciously used will help in giving us 200 million tonnes of extra foodgrains. Current outlets of 2,71,900 seem inadequate from that point of view and should further increase to a level of 5,50,000 to 6,00,000 outlets so that every village is practically well served.

A detailed analysis of last 30 years' data of statewise outlets in cooperative and private sector is alone for the purpose of future guidelines. Strong correlation between fertiliser consumption in kg/ha and number of outlets is seen. Tamil Nadu has shown growth from 12,543 outlets to 16,872 outlets in 20 years. This is evenly spread between cooperatives and private. Villages are 16,780 which all seem to get good supplies. Per hectare consumption is 152 kg/ha NPA against 90 kg/ha of India.

In Punjab growth of cooperative outlets is spectacular going up f rom 870 in 1978 to 3,553 in 1988 and 4,294 in 1998. Total outlets have gone up from 2,420 to 9,435 serving 12,800 villages and per hectare consumption of 177 kg/ha is the highest in India.

These two states can act as models for other states in building the network. National share of cooperatives in total network is 26 per cent and they handle 26 to 35 per cent of material. Cooperatives enjoy greater credit support and farmers participation is high. Government support is available.

In states with weak cooperatives, such as Bihar, Assam, Rajasthan total outlets were 4,546 in 1978. These have increased to 10,298 by 1998 but cooperative outlets declined from 3,178 to 2,214 in 1988 and 2,736 in 1998. Fertiliser consumption is hardly 37 kg/ha, less than 50 per cent of national average.

Number of outlets as compared to 39,800 villages in Rajasthan are also poor. In MP for 7,62,000 villages only 12,000 outlets are there. Mortality in 4,261 private outlets is nearly 60 per cent in last five years.

The result is that one outlet hardly caters to nine villages. A recent committee appointed by the state government has strongly advocated increase in effective outlets to boost fertiliser consumption. Himachal Pradesh with almost all 2,568 outlets of cooperatives serving 19,400 villages has lopsided distribution and low 40 kg/ha NPK consumption.

While other factors like easy availability, good quality, free flowing nature, sound bags, timely supply, promotion, developmental effort, pricing, cost benefit ratio, etc. are all important, inadequate and improper network can mar all these favourable things.

Fertiliser manufacturers will have to constantly monitor network, weed out ineffective outlets, add new dynamic companies in distribution system, remain alert so that money in not lost when material is supplied in faith, encourage more cooperative outlets of viable nature manned by sincere people and strike balance between the two major channels so that distribution and consumption remains smooth and greater flow of material is facilitated.