Status, challenges and strategies of farm mechanization in India

Abstract

Economic growth in Indian agricultural sector lags behind growth in industry and services, creating an ever widening rural–urban income gap. Agricultural mechanization plays a key role in improving agricultural production and productivity in developing counties. The average farm size in India is small (1.16 ha) and small and marginal land holdings (less than 2.0 ha) account for 85% of land holdings. Mechanizing small and non-contiguous group of small farms is against ‘economies of scale’ for individual ownership of farm machinery. The status of farm mechanization in India is analysed by the trend in growth of mechanically power-operated farm equipment over traditional human and animal power operated equipment. It was observed that there was a direct correlation between farm power availability and productivity during the past six decades. Haryana state of India has the highest tractor density per thousand hectare of net sown area of 84 tractors and followed by 76 tractors for Punjab against all India average of 33 tractors. The sale of transplanter, power weeder, combine harvesters, rotavator and thresher in India is growing at a compound annual growth rate (CAGR) of 50, 50, 28, 20 and 10%, respectively. The available farm power and productivity in India are expected to reach 2.2 kW/ha and 2.3 t/ha, respectively by the year 2020. The widely fragmented and scattered land holdings in many parts of the country need to be consolidated to reap benefits of agricultural mechanization. There is a need to innovate custom service or a rental model by institutionalization for high cost farm machinery such as combine harvester, sugarcane harvester, potato combine, paddy transplanter, laser guided land leveller, rotavator etc. to reduce the cost of operation and can be adopted by private players or State or Central Organizations in major production hubs. The farm machinery bank may be established for machines being manufactured elsewhere in the country to supply in low mechanised region on custom hiring basis. Financial assistance or procurement subsidy may be provided for the purchase of agriculture machinery and equipment on individual ownership or custom hiring basis.