3. Flow of the Presentation
• An Introduction to Farm Mechanization
• Benefits from Farm Mechanization
• Disadvantages of Farm Mechanization
• Current Status of Farm Mechanization in the World
• Current Status of Farm Mechanization in India
• Opportunities in Farm Mechanization in India
• Way Forward
• Govt. Initiatives towards Farm Mechanization
• Conclusion
3
4. An Introduction to Farm Mechanization
• Farm mechanization means the use of machines and technology in the agriculture
sector.
• FAO defines mechanization as, “ The application of tools, implements and
machinery in order to achieve agricultural production”.
• Farm mechanization the process of improving farm labour productivity through
the use of agricultural machinery, implements and tools. It involves the provision
and use of all forms of power sources and mechanical assistance to agriculture,
from simple hand tools, to animal draught power (DAP), and to mechanical power
technologies
4
6. Benefits from Farm Mechanization
6
Factor Affected by
Mechanization
Potential Improvement
Labor productivity Farm family can cultivate 1–2 ha by hand;
>2 ha with DAP; >8 ha with tractor
Land productivity Increased production through better
placement of seed and fertilizer, better
weed control through line-planting and
improved timeliness
Value chain development Holistic improved mechanization along the
value chain from producer to consumer
can greatly improve productivity and
improve livelihoods
Timeliness of operations Approximately 1% reduction of yield per
day of delay in planting
Drudgery Reduction Reducing the need for women’s muscle
power especially hand-hoeing and
transport
Economical Benefits
Improvement of work
environment
Enhancement of safety
Decrease in workload on
women
Helps in encouraging the
youth to join farming and
attract more people to work
and live in rural areas
Social Benefits
7. Disadvantages of Farm Mechanization
Farm
Mechanizati
on
High Initial
Cost
Destruction
of soil
structure
Unstable
fuel supply
Inadequate
technical
knowledge
High
depreciation
and
maintenance
cost
Displace
ment of
worker
Increase
wages
Environm
ental
Pollution
7
9. Current Status of Farm Mechanization in India
• Agriculture and allied sector contribute
approximately 14% on India’s GDP.
• Use of proper equipment can increase
the farm productivity up to 30%.
• India mechanization level: 40-45%
• The size of the farm equipment sector
is estimated at approximately US$ 6.5
billion. (Currently US$ 8.5 billion)
• Tractor accounts for most of the farm
mechanization in India.
9Source: Transforming Agriculture through Mechanization, FICCI Report, 2014
10. Extent of Mechanization at Various Level of Farming
Source: Grant Thompon Analysis Based on, “Testing of Hand Tools and Non-Motorized Machine Used in Agriculture in Asia Pacific Region”, by
Shreemat Shrestha, Agricultural Engineering Division, Nepal Agricultural Research Council, Available on UNESCAP CSAM Website
10
Soil working and
seedbed preparation
40%
Seeding & planting
29%
Plant Protection
34%
Irrigation
37%
Harvesting
& threshing
60-70%
12. Contribution of Different Power House
Source: Ministry of Agriculture
12
Agri Worker Draught Animal Tractor Stationary Engine Total Power (In KW/ha)
1981-82 10.92 27.23 19.95 41.57 0.471
2005-06 5.77 8.02 46.7 41.12 1.502
2011-12 5.09 6.37 51.08 37.46 1.91
0
10
20
30
40
50
60
In%
13. Sales Volume of Tractors in 000’ Units
Source: High off Research 13
0
100
200
300
400
500
600
700
Yr 2008 Yr 2009 Yr 2010 Yr 2011 Yr 2012 Yr 2013 Yr 2014 Yr 2015 Yr 2016 Yr 2017
India
Chiana
14. Major Farm Machinery Used in India
Name of Machinery Market Size Annually (Units) Annual Industry Size (In cr.)
Tractor 6,00,000 34,200
Power Tiller 56,000 706
Combine Harvester 4,000-5,000 770
Thresher 1,00,000 1,230
Rotavators 60,000-80,000 693
Rice Transplanters 1,500-1,600 62
Self Propelled Reapers 4,000 - 5,000 45
Zero Till Seed Drills 25,000 - 30,000 132
Multi-Crop Planters 1,000 - 2,000 8
Laser Land Levellers 3,000 - 4,000 129
Weeders 25,000 1,275
Source: Trends of Agriculture Mechanization in India, CSAM Policy Brief, June 2014 14
15. Opportunities in Farm Mechanization in India
15
Operation Plains Hilly Region Precision Farming
Machines
Prime Mover Manual Animal
Drawn
Tractor/power/tiller/self
/propelled/ power
operated
Manual Animal Drawn Tractor/power/tiller/s
elf/propelled/ power
operated
Power Operated
Seed Bed Preparation
Sowing/Planting/Transplanting/Fertilizer
Application
Irrigation and drainage
Weeding/Harbicide Application
Fertilizer Manure/ Agro-chemical application
Spraying
Harvesting
Threshing
Special package of equipments
Other Mechanize/equipment
Legends
Availability, possibility on improvement needs to be demonstarted
Normally, the operation is done using conventional tools or the power source is not used for this operation/ system or not applicable
Available for some crop or in some parts of country, needs refinement, feasibility trials in other parts/crops
Needs development/refinement
16. Potential for mechanization along the
agricultural production value chain
Production Post-
harvest/stora
ge
Processing Marketing
Crop
establishment,
Weeding,
Fertilizer,
Irrigation Crop
Protection,
Harvesting,
Drying,
Grading,
Winnowing,
Cleaning,
Storage
Chopping,
Milling ,
Grinding,
Pressing
Packing,
Transportatio
n
16
17. Growth drivers
17
Low penetration of farm equipment: Penetration of
farm equipment in India provides a strong growth opportunity.
As mentioned above, only about 40-45 percent of agriculture in
India is mechanized. In 2012-13, it was estimated that the
penetration of tractors was about 20 per 1,000 hectares. The
penetration is lower with the small and marginal farmers who
own land less than 5 hectares. This segment forms over 80
percent of the land holdings in the country. Thus, there is a lot of
potential for increasing the penetration and therefore growing the
market size.
Credit availability: Agricultural sector requires adequate financing
with such a large portion of land holdings falling into the category of
small and marginal farmers. With a greater focus on meeting the future
production demand, various national and commercial banks have
devised special plans to support the farmers through different schemes.
There are several wrinkles in the procedure but a combine effort between
the government and the institutions, dialogues for which are already
underway, provides a good indication for the future of the industry. The
government has also taken a keen interest in the industry and has
provided special budget allocations under the 12th five-year plan
Contract farming: Business establishments provide farmers with
specialized farm equipment and various amenities to improve crop
yield through the adoption of latest agricultural technologies. Many
companies in the country have participated in such practices before.
The continuation and growth of contract farming with more entities
getting involved provides future opportunities for the expansion of the
industry.
19. Challenges to Farm Mechanization
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Equipment cost, quality and after-
sale service
Financing of farm equipment:Small and scattered land holdings
Tractorization’ and not
mechanization:
Procurement process for the farmer: Redundancies and inefficiencies in
the equipment testing process:
Challenges
20. Way Forward
20
Customer Hiring System (CHCs) are basically a unit comprising a set
of farm machinery, implements and equipment meant for custom
hiring by farmers.
It is an important mechanism through which most small holders can
access services of agricultural machinery.
Promoting the idea of cooperative farming among small and marginal
farmers so that these ‘cooperatives’ can together fund farm
equipment and use concurrently
These centers could be established on a ‘hub-and-spoke’ model
wherein last-mile outreach is established by having smaller outlets at
the village level, which can also provide support for farming
practices.
21. Govt. Initiatives towards Farm Mechanization
Mechanization under the National Food Security Mission
(NFSM):
21
The National Development Council (NDC) adopted a resolution to launch a food
security mission comprising of wheat, rice and pulses to increase production of
wheat by 8 million tons and pulses by 2 million tons by the end of the XIth five-
year plan. Accordingly, the National Food Security Mission (NFSM) was launched
in October, 2007. The mission is being continued in the XIIth five-year plan with
revised targets. The plan now targets additional production of food grains of up to
25 million tons (10 million tons of rice, 8 million tons of wheat, 4 million tons of
pulses and 3 million tons of coarse cereals) by the end of the five-year plan. In
accordance with that, the Mission makes provisions for assistance (up to 50
percent the cost of machinery) to be provided for adoption of farm machinery
such as pump sets, tractor mounted sprayers, seed drills, zero till seed drill etc. to
varying degrees.
Mechanization under the Mission for Integrated Development of
Horticulture (MIDH):
MIDH is a centrally sponsored scheme for the overall growth of the horticulture sector
covering fruits, vegetables, root and tuber crops, mushrooms, spices, flowers, aromatic
plants, coconut, cashew, cocoa and bamboo. The Central Government provides 85
percent of the assistance and the remaining 15 percent is provided by the states (except
in the north-eastern and Himalayan states where the central government’s contribution
is 100 percent). One of the key interventions under the scheme is ‘Horticulture
Mechanisation’ which aims to improve farm efficiency and reduce drudgery of the
workforce. Assistance in this regard is provided for activities such as procurement of
power operated machines and tools, besides import of new machines. Assistance is also
available to grower associations, farmer groups, self-help groups, and women farmer
groups etc. (with more than 10 members) that are engaged in cultivation of horticulture
crops. 60 percent of the cost of machines will be borne by such groups.
National Mission on Agricultural Extension and Technology
(NMAET):
Agricultural technology, including the adoption/ promotion
of critical inputs and improved agronomic practices, was
being disseminated under 17 different schemes of the
Department of Agriculture and Cooperation during the 11th
plan. The Modified Extension Reforms Scheme was
introduced in 2010 with an objective to strengthen the
extension machinery and utilise it for synergising the
interventions under these schemes under the umbrella of
Agriculture Technology Management Agency (ATMA).
22. Conclusion
• Both mechanized and traditional farms have generated net income from the crop.
• The net income of the mechanized farms was higher than that of the traditional
farms because the former got higher yield/ha.
• This may be attributed mainly to the in time land preparation, better tillage
practices, and shilling etc; by the mechanized farms. This shows that machinery is
a closed substitute for labor and animal power.
• The mechanization can thus helps in the increase of output and hence income.
• The increase in input and income can encourage the labor requirements.
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