Huge potential for farm mechanisation in India, says expert

Vijay C Roy

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Chandigarh, November 8

Though India constitutes 10% of the global tractor market, when it comes to farm machinery (non-tractor), it is just 1% of the global industry.

According to experts, there is a huge opportunity in the farm machinery sector, especially with the increasing need for precision farming that includes implements and machinery other than tractor. The farm equipment, such as laser leveller, rotavator, reapers, paddy transplanter and harvester, are gaining popularity among farmers, however, the penetration is low.

As per the experts, India is a tractorised market and not mechanised. Globally, the tractor industry is only 38% of the total industry (tractor+farm machinery) while in India it is around 80% of the total industry.

“The Indian tractor market is pegged at around Rs 39,000 crore — 10% of the global industry. In contrast, the farm-machinery market is around Rs 7,000 crore — just 1% of the global industry (at around $100 billion),” said Harish Chavan, CEO (Swaraj Division), M&M Ltd.

Mechanised farming reduces costs and drudgery and at the same time it ensures timeliness of operations and augments efficiency and profitability in agriculture.

The emerging areas that need attention include mechanisation of labour-intensive operations such as paddy transplanter, cotton picking, sugarcane harvesting, introduction of crop residue management and propagation of water conservation technologies through the use of suitable equipment.

Experts are of the view that though the mechanisation in agriculture has grown steadily in the past three decades, the sector faces problems due to declining size of landholding and scattered farms, which restrict the scope for largescale farm mechanisation and affordability.

With low levels of mechanisation due to affordability and accessibility of expensive machinery, the farm machinery makers are of the view that there is a need for incentivising the farm machinery industry through a Production Linked Incentive scheme to deliver “best-in-class” products for domestic and exports markets.

Indian market just 1% of global industry

Indian farm-machinery (non-tractor) market is around Rs 7,000 crore — just 1% of the global industry (around $100 billion). — Harish Chavan, ceo (Swaraj division), M&M