Agricultural Machinery Manufacturers Association.
AMMA - India
1
Agricultural Machinery Manufacturers Association.
AMMA - India
By
D S Balachandra Babu President, AMMA- India
“ Need based Agricultural Implements
- Future Strategy”
AMMA - India
Agricultural Machinery Manufacturers Association.
AMMA - India
Total population:1.21 billion (2011)
Population growth rate:1.5% annually
Majority (69%) of people live in rural areas.
Land area: 297.3 million ha (2.4% of world)
17% of population;
Only 4.2% of world water; 1200 mm annual rainfall
Agriculture accounts for 80% of water needs;
60% from ground water.
India
Agricultural Machinery Manufacturers Association.
AMMA - India
3
Agricultural Machinery Manufacturers Association.
AMMA - India
Agricultural Scenario in India
Geographical Area and Agricultural Land
•Total geographical area
•Net cropping area
•Grossed cropping area
•Net area under irrigation
•Land distribution pattern
• Large > 10 ha (17 ha)
•Medium 4-10 ha (6 ha)
•Semi-medium 2-4 ha (2.7 ha)
•Small 1-2 ha(1.4 ha)
•Marginal > 1 ha(0.4 ha)
328.7 Mha 142.0 Mha 198.0 Mha 60.0 Mha
15%
25%
24%
19%
17%
Agricultural Machinery Manufacturers Association.
AMMA - India
INDIAN AGRICULTURE CONTRIBUTION TO GDP
AGRICULTURE INDUSTRY &
SERVICES
Agricultural Machinery Manufacturers Association.
AMMA - India
Indian Agricultural Machinery Industry
250 Medium to Large Scale Units
2,500 Small Scale Industries
15,000 Tiny Industries
1,00,000 Village level Artisans
32,000 Crore Industry, CAGR growth 5%
AGRI MA- CHINERY TRACTORS
Agricultural Machinery Manufacturers Association.
AMMA - India
Level of Farm Mechanization in India
Agricultural Machinery Manufacturers Association.
AMMA - India
Equipment manufacturers No. of units
• Agricultural tractors
• Power tillers
• Irrigation pumps
• Plant protection equipment
• Combine Harvester
• Reapers
• Threshers
• Seed Drills and planters
• Diesel oil engines
• Plough, cultivators, harrows
• Chaff cutter
• Rural artisans (hand tools)
21 7 600 300 48 60 6000 2500 200 5000
50
>1 million
Manufacturing Units in India
Agricultural Machinery Manufacturers Association.
AMMA - India
WHY SECOND GREEN REVOLUTION..?
• More than 50% population depend upon agriculture for their livelihood and a source of raw materials for industries .
• Food grains requirement will grow to 280 mtons to feed the growing population by 2020-21 from the present 267 mtons (2013-14)
• The country has 198 mha cultivable land but due to resource constraints net cropped area is 141 mha.
Cont’d
Agricultural Machinery Manufacturers Association.
AMMA - India
WHY SECOND GREEN REVOLUTION..?
• Eastern, North Eastern and rainfed regions could not increase the yield due to adverse agro- ecological diversity and poor agricultural inputs resources.
• There is large state wise diversity in yield of food grains. More focus is required to increase the agricultural productivity of the Eastern Regions and Rain fed areas.
Cont’d
Agricultural Machinery Manufacturers Association.
AMMA - India
PRECISION MECHANIZATION TECHNOLOGY FOR
SECOND
GREEN REVOLUTION
Agricultural Machinery Manufacturers Association.
AMMA - India
For Achieving Sustainable Food Security, Government of India under Twelfth Five Year Plan, framed future social economic and
technological trends.
To achieve the Food Target, Productivity to be increased. To increase Productivity agriculture Machines plays important role..!
Policy is to promote the usage of farm mechanization and increase the ratio of farm power to cultivable unit area up to 2.5 kW/ha.
It is to ensure performance testing of agricultural machinery and equipment, capacity building of Farmers and End users and promoting farm mechanization.
Policy focus....
Agricultural Machinery Manufacturers Association.
AMMA - India
Agricultural mechanization policy
Should be aimed for
o Sustainable increase in production o Higher returns to farmers
o Mechanization of horticulture and hill agriculture o Worker friendly environment
o Quality of agricultural equipment o Training
o Monitoring and coordination
Agricultural Machinery Manufacturers Association.
AMMA - India
Agricultural mechanization policy
Action plan may be made for…
Identification of agricultural equipment and machinery for promotion
Estimates of credit requirement
Pilot introduction of new machines
Research and development
Farm power and machinery management
Mechanization of horticulture and hill agriculture
Worker friendly environment
Quality of manufacture of agricultural implements
Training
Monitoring and coordination
Cont’d
Agricultural Machinery Manufacturers Association.
AMMA - India
To carry out training courses, seminars, exhibitions on agricultural mechanisation, operator skills, farmer/users education and other areas,
To train specialists in batches in Pre-harvest technology, Harvesting technology, Post-harvesting technology, and Agricultural produce storage.
To ensure quality products to make trouble free operation by farmers/users and ensure that such products are duly certified for export through government / state approved certifying agencies.
Focus area to address
Agricultural Machinery Manufacturers Association.
AMMA - India
Constrains in MECHANIZATION..
•
Small farms and abundance of dry land agriculture
•
Low productivity and high cost of production
•
Inadequate infrastructure for Agro-processing and marketing of agro produce
•
Weak industrial Liasoning
•
Absence of long term Agricultural Mechanization Policy
•
Lack of proper mandatory safety standards & legislative Measures
Cont’d
Agricultural Machinery Manufacturers Association.
AMMA - India
•
Inadequate and ill-equipped repair & maintenance shops
•
Lack of Skilled Operator in Agriculture
•
Proliferation of designs/ Sub-standard designs
•
Defective credit policy
•
High operating cost due to low annual use
•
Absence of Farm Machinery Management Data regarding use- patterns, annual-use, breakdown frequency, repair &
maintenance cost, reliability etc.
Constrains in MECHANIZATION..
Cont’d
Agricultural Machinery Manufacturers Association.
AMMA - India
Subsidy – Finalize within 1st quarter of financial year
Distribution of subsidy - uniform and transparent
Farmers – have choice to select Equipment Brand & Model so that they could get after sales service.
Subsidy Amount - Paid directly to manufacturer after supply of equipment and not to the farmers.
Period of rate contract - not to exceed one year.
Tendering – - no Tendering System.
1. Subsidy Distribution Policy
Agricultural Machinery Manufacturers Association.
AMMA - India
There should not be tendering system for finalization of price of equipment rather a list of quality firms from the state be finalized.
Recent example is of AP Agro Tender for purchase of farm equipment during 2016-17: As per tender for purchase of tractor operated rotavator
EMD - 25 Lakhs PGD - 50 Lakhs Turnover - 50 Crores
Investment capacity of small and medium category agricultural machinery manufacturers is Rs. 10 Crores.
On the one hand Govt. of India is supporting small and medium category agricultural machinery manufacturers under unorganized sector and on the other hand Govt. of Andhra Pradesh and Telengana neglecting these sectors.
1.1 Subsidy Distribution Policy
Agricultural Machinery Manufacturers Association.
AMMA - India
1.2 High % of Subsidy for New High-tech Machineries
This is required to encourage adoption of these New type of Machines by Farmers.
Higher percentage up to 75%. (till get popularized)
This will attract Farmers for adoption and try with new
launch machineries.
Agricultural Machinery Manufacturers Association.
AMMA - India
1.3 Timeliness of Announcement of Subsidies..
Timeliness of Process is very important in Agriculture.
Announcement delay after Khariff or Rabi season make the farmers to reluctant to buy the Machines.
Announcement should be done in the beginning of May.
so that it will help the Farmers to decide and Manufacturers to plan and start manufacturing.
To BUY or
Not to BUY.. ?
Agricultural Machinery Manufacturers Association.
AMMA - India
2. VAT & Entry Tax Free Policy on
Agricultural Implements & machinery
VAT, CST, Entry Tax etc should not be followed for Agricultural Machineries.
Govts are giving subsidies for the machines to make it affordable to farmers. But at the same time charging various kinds of taxes to make it expensive at both Manufacturer and Farmers.
Many of the states still charge VAT on Agricultural Machinery. Whereas Central Govt. is facilitating the
farmers by giving subsidy on that machinery. This is a
contradictory policy. So we request that Agricultural
Machinery should be Tax free in all the states as done
in many states.
Agricultural Machinery Manufacturers Association.
AMMA - India
2.1 Excise duty & Import Duty
Imposition of Excise Duty on Parts / Components of agricultural implements to be exempted.
Excise duty is charged on the purchase of Parts under any chapter of Excise Tariff which are used in Manufacture of
Agricultural Implements. This increases the cost of Agricultural Implements which get levied on the farmers.
Duty exemption is for the complete assembled equipment only.
Duty exemption is not applicable for the Parts / Components
If we have to get the duty concession for parts under this
exemption, the industry has to be register under Central Excise.
Two schedules, A-23 and A-31 as given below may be given attention.
Page No. A-23 – 84th Chapter Serial No.399 (A) and (B) “Parts and components required for manufacture of goods specified at (A)” Page No. A-31 - Condition No. 5
Agricultural Machinery Manufacturers Association.
AMMA - India
3. Agricultural Machinery Testing Centres
Efficient working of Centres by Strengthening Manpower.
Regulating the Rules of Testing, Period etc.
Many of 30 approved testing centres need strengthening.
The Ministry of Agriculture, GOI and State Govts should ensure these centres are strengthened and work efficiently.
No need to conduct or repeat all the test procedures for similar machinery. Variants in the machinery should be tested.
All States and Union Territories be requested to accept the Test Report by notified Testing Centres and not required from FMTTIs.
If more variant of model is available, self-certification by the firms having membership of AMMA-India be allowed to get their products notified for Govt. Subsidy.
Agricultural Machinery Manufacturers Association.
AMMA - India
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4. Easy Financing to Farmers & Industry
Decides purchase power of Farmers and resulting in Machinery manufacturers sales.
Easy loan Finance to Farmer at low interest rates
Power Tillers, Transplanters & such equipments which does not come under RTO registration are not easily financed.
Farmers not able to get finance support for the machineries except Tractors and combine harvesters.
Loan for agricultural machinery below Rs. 2 lakhs should be immediately financed by all the banks to the needy farmers
Banks should not ask for Collateral security for less than 1 Lakh amount.
Agricultural industry is engaged in serving purely agriculture, so they
should be provided all financial assistance at the interest rate equivalent to that of Agricultural loans to get machinery at cheaper price.
Agricultural Machinery Manufacturers Association.
AMMA - India
1) Identify the Demand – in our country & abroad, where the machines can be easily adopted
2) Enquiries from Abroad - not able to finalize due to absence of authenticity by any Govt. agencies. Especially African countries for Agricultural Machinery
3) Specialized Marketing Board /Agencies Farmers – to promote sale of these Agricultural Implements & Machinery manufactured in India by MSMEs.
5. Formation of Marketing Board for Export
of Agricultural Machinery
Agricultural Machinery Manufacturers Association.
AMMA - India
FUTURE STRATEGIES for MECHANISATION
• Location specific and crop specific technologies
• Mechanization of rice, cotton, sugarcane, oil seeds, pulses, plantation crops and horticulture.
• Green House and surface covered cultivation including application of microprocessors and computers in agriculture
• Multifunctional equipment for conservation of energy and turn around time
• Occupational Health Hazards and Safety issues
• Gender Friendly Tools & Equipments
Agricultural Machinery Manufacturers Association.
AMMA - India
Future GOALS..
• To introduce eco-friendly, sustainable, multi-venture viable farming systems
• To diversify agriculture by reducing area under paddy & wheat by greater emphasis on horticulture, dairy farming, poultry, fisheries and allied vocations such as mushroom growing, apiculture etc.
• To reduce cost of production and upgrade quality of produce to attain global compatibility.
• To reduce/curtail losses at various stages. Losses for fruits and vegetables range from 40-50%.
• To protect natural resources of soil, water and environment. There is a sharp decline in soil quality and fertility, depletion in water-table, water and air pollution as well as phenomenal rise in new regimes of pests and weeds.
• To develop field-worthy technologies for utilization and management of agricultural wastes and by-products.
Agricultural Machinery Manufacturers Association.
AMMA - India
