Farm Mechanization in India

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V.N.KALE Additional Commissioner Mechanization and Technology Division Dept. of Agriculture and Cooperation Ministry of Agriculture Government of India

Farm Mechanization in India:

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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.

52% workers in Agriculture: 14% of GDP;

India

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3

0 100000 200000 300000 400000 500000 600000 700000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 247351 296080 352835 346501 342836 393836

545109 607000 590672

696828

Sale of Tractors

Sales of Tractors and Power Tillers in India

0 10,000 20,000 30,000 40,000 50,000 60,000

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013- 14 17,481 22,303 24,791 26,135

35,294 38,794

55,100 60,000

47000

56000

Sale of Power Tillers

(4)

Trend of power availability from different sources

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1971-72 1981-82 1991-92 2001-02 2005-06 2009-10

8.45

18.46

26.14

36.77 38.45 41.67

10.79

15.82

24.84 26.31 25.66 25.13

Electric motors Diesel engines Power Tillers Tractors

Draught Animals Agriculture Workers

Share of agricultural worker

& draught animals came down from 63.5% in 1971- 72 to 13.67% in 2009-10

(5)

Comparison of Mechanization with Other Countries

Source: FAO Yearbook 2003

Sl. No. Country Farm Power No. of Tractors per 1000 Ha.

No. of Combine Harvesters per 1000 Ha.

(kW/Ha)

1 India 1.36 15.75 0.026

2 Japan 8.75 461.22 236.98

3 U.K. 2.5 88.34 8.3

4 France 2.65 68.5 4.93

5 Italy 3.01 211.08 4.71

6 Germany 2.35 79.817 11.41

7 Argentina -- 10.74 1.79

8 Brazil -- 13.66 0.915

9 China -- 6.98 2.53

10 Pakistan -- 16.47 0.08

11 Egypt -- 30.7 0.79

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United States [2.4%, 95%]

Western Europe [3.9%, 95%]

Former Soviet Union [14.4%, 80%]

Brazil [14.8%, 75%]

Argentina [9.4%, 75%]

India [55%,40%]

China [64.9%, 38%]

Africa [60%, 20%]

Population engaged in Agriculture vis-a-vis level of farm mechanization

Higher share of labour (55%) with lesser contribution to GDP (14%) makes farming in India less remunerative and incidence of farmers’ poverty

(7)

Farm Mechanization: Key driver of productivity

Agricultural productivity has positive correlation with level of farm mechanization

0.25 0.31 0.35

0.63

0.92

1.35

1.66

0.522 0.71 0.872

1.023

1.38

1.723

1.92

0 0.5 1 1.5 2 2.5 3 3.5 4

1951 1961 1971 1981 1991 2001 2010

Foodgrain Yield (T/ha) Farm Power (Kw/Ha)

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8

166.35

240.85 261.94

322.75

436.74 444.76 440.59

102.79 462.18 505.3

427.87

760.84

997.37 985.02

1045.9

282.6

0 200 400 600 800 1000 1200

2007-08 2008-09 2009-210 2010-11 2011-12 2012-13 2013-14 2014-15 (Apr-Jun)

Fig. : Exports - Imports of selected agriculture equipments (USD million)

Total Imports Total Exports (USD million)

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Tillage &

seedbed Preparation

Sowing/

Planting

Fertiliser

Application Irrigation Harvesting Post Harvesting Inter Cultivation

Plant Protection

Level of Farm Mechanization in India

Overall about 40-45%

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 Large No. of manufacturers

 Testing Facility at : 4 FMTTIs , 30 designated centers and BIS labs

 Vast network of academic and R&D institutions including 100 centers for research, technology transfer and extension

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)

13 2 600 300 48 60 6000 2500 200 5000

50

>1 million Source: ICAR 2011

Farm Mechanization: SWOT Analysis Strengths

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2.28

2.00

1.84

1.69

1.55

1.41 1.33

1.23 1.16

0.00 0.50 1.00 1.50 2.00 2.50

1970-71 1976-77 1980-81 1985-86 1990-91 1995-96 2000-01 2005-06 2010-11

Average size (in 'ha)

Reference year

Average size of operational holdings

Source: Agriculture Census 2012

^.

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The Core Issues

 Small/Medium Farmers : Low credit worthiness

 Adverse ‘Economies of Scale’;

 Weak financial strength of majority of farmers (SMF);

 Lack of access to credit to Rural Entrepreneurs for setting Custom Hiring Centre;

 Need for promoting appropriate Farm

Equipment: Low cost, region and crop specific,

indigenous technology

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Policy Framework : Addressing Issues

 Unbundling Agriculture Services from Farmers;

 Facilitate Entrepreneurs to establish Custom Hiring Centre;

• Facilitating rural entrepreneurs

 Special incentives to Small and Marginal farmers

 Focusing on village level mechanization : low cost, region –crop specific,

indigenous technology



Addressing adverse

‘Economies of Scale’



Access to Credit



Promotion of appropriate

Farm Equipment: Low

cost, region and crop

specific, indigenous

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 High women workforce in agriculture – both in

production and processing

 Ergonomically designed tools and equipment for

 Reduced drudgery

 Enhanced safety & comfort

Other Key Focus Area : Gender-friendly

tools and equipment

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SUB-MISSION ON

AGRICULTURAL MECHANIZATION

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Mission Objectives



Increasing the reach of farm mechanization to small and marginal farmers and to the regions where availability of farm power is low;



Promoting ‘Custom Hiring Centres’ to offset the adverse

economies of scale arising due to small landholding and high cost of individual ownership;



Creating hubs for hi-tech& high value farm equipments;



Creating awareness among stakeholders through demonstration and capacity building activities;



Ensuring performance testing and certification at designated

testing centers located all over the country.

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Sub Mission on Agricultural Mechanization (SMAM) : Key Interventions

1. Promotion and Strengthening of Agricultural Mechanization through Training, Testing and Demonstration

2. Demonstration, Training and Distribution of Post Harvest Technology and Management (PHTM)

3. Financial Assistance for Procurement of Agriculture Machinery and Equipment

4. Establish Farm Machinery Banks for Custom Hiring

5. Establish Hi-Tech, High Productive Equipment Hub for Custom Hiring

6. Promotion of Farm Mechanization in Selected Villages 7. Financial Assistance for Promotion of Mechanized

Operations/hectare Carried out Through Custom Hiring Centres 8. Promotion of Farm Machinery and Equipment in North-Eastern

Region:

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 Trainees sponsored by the state nodal agencies to the User Level Courses at the FMTTIs will be paid stipend @Rs. 500/- per week per trainee.

Travel expenses to the trainees admitted in these courses will be paid on actual basis by ordinary mode of transport from their place of residence to the training institute and back.

 The training institutions will claim Rs 4000/- per person per week for the conduct of these courses. This includes:

 stipend of Rs. 500/- per trainee per week

 Actual to and fro travel expenses by ordinary mode of transport in ordinary class, upto maximum of Rs. 500/- per trainee

 boarding and Lodging Charges @ Rs. 1500/- per trainee per week

 Institutional charges (including stationary, training material, honorarium) @ Rs. 1500/-per trainee per week

Financial Assistance:

Training

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Northern Region Farm Machinery Training and Testing Institute

Hissar, 1963

Central Farm

Machinery Training and Testing Institute Budni 1956

North-Eastern Region Farm Machinery Training and Testing Institute,

Biswanath-Chariali 1990

Southern Region Farm Machinery Training and Testing Institute, Garladinne, Anantpur 1983

Capacity Building Location of FMTTI’S

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Demonstration

 Field demonstrations of package of machines/equipments will be conducted on cropping systems based approach in the districts identified for AAP.

Power operated/self- propelled equipment

Rs. 4000/- per hectare For hilly areas, cost per demonstration will be 1.5 times of said cost.

Animal drawn equipment Rs. 2000/-per hectare

Manually operated equipment

Rs. 1500/-per hectare

Financial Assistance: Demonstrations will be organized by ICAR, PSUs of GOI and State Government’s organizations. Government of India will provide 100%

assistance for contingency expenditure per demonstration, as per following norms:

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Establishment of post harvest technology

 The units utilizing the available post harvest technologies and management, value addition, scientific storage, packaging technologies and technologies for bi-product management .

Technical guidance on the available post harvest technologies will be provided by CIPHET Ludhiana and also by other ICAR/CSIR/SAU centers.

Financial assistance: PHT units shall be established in the production

catchments with 50% assistance from the Government of India limited to Rs.

1.25 lakhs per machine/technology. (Additional 10 % assistance limited to Rs.

1.50 lakhs will be available for SC, ST, small & marginal farmers, women, and NE States beneficiary). Remaining cost will be borne by beneficiary.

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Financial Assistance for Procurement of Agriculture Machinery and Equipment



Ranges 25% to 50% subsidy per machine



10% more subsidy to SC/ST/Women/Small & Marginal

farmers/ NER states beneficiery

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Farm Machinery Banks for Custom Hiring

S.N ITEM MAXIMUM

PERMISSIBLE PROJECT COST

PATTERN OF ASSISTANCE

A Procurement subsidy for establishment of Custom Hiring Centre upto 10 lakh

Project based Rs. 4.0 lakh

40%

B Procurement subsidy for establishment of Custom Hiring Centre upto 25 lakh

40%

C Procurement subsidy for establishment of Custom Hiring Centre upto 40 lakh

40%

D Procurement subsidy for establishment of Custom Hiring Centre upto 60 lakh

40%

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Hi-Tech, High Productive Equipment Hub for Custom Hiring:

Financial Assistance

S.N ITEM MAXIMUM

A Procurement subsidy for establishment of Custom Hiring Centre upto 100 lakh

40%

B Procurement subsidy for establishment of Custom Hiring Centre upto 150 lakh

40%

C Procurement subsidy for establishment of Custom Hiring Centre upto 200 lakh

40%

D Procurement subsidy for establishment of Custom Hiring Centre upto 250 lakh

40%

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Promotion of farm mechanisation

in

selected villages



Objectives:

To establish farm machinery banks by the Cooperative Societies of farmers, Self Help Group of Farmers etc. in the selected

villages of low mechanized states so as to encourage members to take up appropriate mechanized operations

To conduct demonstrations through Custom Hiring Centres in large areas with the assistance of Custom Hiring Centres set up under component (4).



Financial Assistance: Each village will be eligible for setting up of farm machinery banks upto a maximum project cost of Rs.

10 lakhs. Financial assistance @ 80% of the project cost will be

provided for such machinery banks.

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Assistance for Mechanized operations.

Financial Assistance: Financial assistance will be available to the beneficiaries upto a maximum of 1 ha area as per following norms:

For tractor/power operated operations – 50% of the cost of operation /ha limited to Rs. 2000/ha per farmer per year

For animal drawn mechanized operations- 50% of the cost of operation /ha limited to Rs. 1000/ha per farmer per year

For manual operations –50% of the cost of operation /ha limited to Rs. 750/ha per farmer per year

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Promotion of farm machinery and equipment in North-Eastern States

Financial Assistance

ITEM MAXIMUM

(a) Financial assistance for procurement of machinery/

implements

Upto Rs.1.25 lakhs per beneficiary

100% of cost of machinery/implement

/equipment

(b) Financial assistance for Farm Machinery Banks for group of farmers

Upto Rs.10 lakhs per Farm Machinery Bank

95% of cost of Farm Machinery Banks

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Distribution of Agricultural Machinery and Tools-(2014-15)

28

1515 20108 19755

186594

92852

275972

59266

23380

679442

0 100000 200000 300000 400000 500000 600000 700000 800000

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29

RKVY MMA NHM NFSM RKVY NHM NFSM RKVY MIDH NFSM NMOOP SMAM RKVY MIDH NFSM NMOOP SMAM

2012-13 2013-14 2014-15 2015-16

129914

23445.6

5624.4

24016.1

89426

5507.67

28440.59 92054

8039.57 13562.92 5123.85 16584.64

0 0 0 6657.5 14968.38

Fig : Details of fund released to the state Governmnet during the last three years and the current years for Farm Mechanisation (Rs in Lakhs)

RKVY- Rastriya krishi Vikas yojna MMA-Micro management in Agriculture NHM National horticulture Mission NMOOP- National Mission on oil seed and oil palm NFSM- National food security Mission SMAM- Sub mission on Agricultural mechanisation

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30

104 1299.2 862.11 78 894.5 376.29 104 928.8 324.56

No. of Project

Approved Project Cost Expenditure No. of Project

Approved Project Cost Expenditure

2012-13 2013-14 2014-15

Fig. : Performance of RKVY (Farm Machinery Component) During 12 th Plan ( Rs In Crores)

Farm Mechanization in India