Mechanization and Technology Division

Dept. of Agriculture and Cooperation

Ministry of Agriculture
2013

Farm Mechanization in India:
Unfolding Future of Mechanized Farms
Tillage &
seedbed
Preparation
Sowing/
Planting
Fertiliser
Application
Irrigation Harvesting
Post
Harvesting
Inter Cultivation
Plant Protection
Mechanized Solutions for whole chain
Mechanisation is clearly the answer to key performance parameter at every
stage of cropping cycle
Scope of Farm Mechanization
Sales of Tractors and Power Tillers in India
0
1,00,000
2,00,000
3,00,000
4,00,000
5,00,000
6,00,000
7,00,000
2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12
2,47,531
2,96,080
3,52,835 3,46,501 3,42,836
3,93,836
5,45,109
6,07,000
TRACTORS
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
17,481
22,303
24,791
26,135
35,294
38,794
55,000
60,000
POWER TILLERS
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
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
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
Advantages of Farm Mechanisation
Improves utilization efficiency of inputs such as
seeds, chemicals, fertilizers and energy
Ensures timeliness of farm operations leading to
higher productivity and cropping intensity
Reduces cost of production and increases agricultural
income
Reduces drudgery and improves safety in operation
of farm machinery
Helps in conserving natural resources e.g, water
Estimated contributions from farm
mechanization
Savings in seeds: 15-20%;
Savings in fertilizers: 15-20%;
Increase in cropping intensity: 5-20%;
Savings in time: 20-30%; and
Reduction in manual labour: 20-30%;
Overall increase in farm productivity 10-15 %;

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)
Need For Accelerated Farm Mechanization
Positive correlation between farm power availability and
agricultural productivity
Addressing scarcity of agricultural labour (MNREGA)
Climate Change Mitigation (less sowing window, quick
harvesting, delay in planting)
However, notwithstanding advantages:
Growth of farm mechanization (farm power/ha) is poor in
last decade (CAGR: about 2% between 2001-2010) ; and
Level of mechanization is significantly low in many potential
regions (Eastern, North Eastern, Central)

2294
1555
1662
1530
1008
1987
1560
3383
1297
1405
1330
1377
2470
1285
1039
1796
1809
1047
1256
1397
4144
931
1496
2477
2544
2236
1780
2522
0
500
1000
1500
2000
2500
3000
3500
4000
4500
0 0.5 1 1.5 2 2.5 3
Punjab
Haryana
TN
WB
Kerala
Tripura
AP
UP
National Average: 1790 Kg/ha
Farm Power Availability and Foodgrain Yield ( 2010-2011)
National Average: 1.66 KW/ha
Goa
High Mechanisation
& High Yield: 5 States
Low/Moderate Mechanisation & High
/Average Yield: 7 States (Rice Based)
Uttarakhand
Manipur
Meghalaya
Low Mechanisation & Low Yield: 17 States
Farm Power ( Kw/ha)
F
o
o
d
g
r
a
i
n

Y
i
e
l
d

(
K
g
/
h
a
)

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%
What Retards Farm Mechanization Growth
Farm Mechanization requires minimum scale of operation;
Small and Marginal Farmers comprising about 84% of cultivators - but
adverse economy of scale and their poor financial strength excludes
them from fold of farm mechanization




2.2% CAGR
between 2001-
2010
0.42
0.59
0.91
1.35
1.5
1.66
0
0.2
0.4
0.6
0.8
1
1.2
1.4
1.6
1.8
1971-72 1981-82 1991-92 2001-02 2005-06 2009-10
Farm Power (kW/ha)
Farm Mechanization has so far eluded
Small and Marginal Farmers (SMF)
Farm Equipment especially tractors, power tillers possessed by Small and Marginal
Farmers are substantially less than medium and large farmers
Small and Marginal Farmers
Ongoing Programmatic Interventions
Orientation towards Individual Ownership : Macro
Management of Agriculture (MMA), National Food
Security Mission (NFSM), Rashtriya Krishi Vikas Yojna
(RKVY):
Small and Marginal Land Holdings (<2 ha): Adverse
Economies of Scale- Individual ownership is not viable
High cost of ownerships: Many especially
small/medium farmers can not afford even with 50%
subsidy;
Subsidy and Bank Linkages : Financial exclusion of due
to small/marginal farmers poor credit worthiness

Present Policy Environment: Institutional
Credit
Small/Medium Farmers : Low credit
worthiness
Farm Equipment Loan linked with land
holdings: High Entry Barrier for small/medium
Entrepreneurs' to set up mechanization services
(Custom Hiring Centre);
Result: Stagnating Credit Growth in Farm
Mechanization

Stagnating Credit growth in Farm Mechanization
Source: NABARD, Annual Report 2009-10
Credit flows more freely to Crop or Working Capital Loan / ST Loan
Balancing Adverse Economies of Scale : Custom
Hiring or Taxi Model
FICCI-YES Bank Report, 2009
The Core Issues
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




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




Individual Ownership Vs Custom Hiring
Key Question is How to cater marginal and small
farmers who aggregate to > 80% of cultivators
Sub Mission on Agricultural Mechanization
(SMAM)* : Key Interventions
1. Promotion and Strengthening of Agricultural Mechanisation
through Training, Testing and Demonstration;
2. Appropriate Post Harvest Technology and Management
(PHTM);
3. Financial Assistance or Procurement Subsidy for creating
ownerships of Agriculture Machinery and Equipments;
4. Establishment of Farm Machinery Banks for Custom Hiring


* Under the aegis of National Mission on Agricultural Extension
& Technology (NMAE&T)

Sub Mission on Agricultural Mechanization
(SMAM)* : Key Interventions
5. Creation of Hi-Tech, High Productive Equipment Hub for
Specific crops (Sugarcane, Cotton etc.);
6. Enhancing Farm Productivity at village level by introducing
appropriate farm mechanisation in selected villages;
7. Creating ownership of appropriate farm equipment among
Small/Marginal farmers;
8. Assistance to farmers for promoting mechanized farming

* Under the aegis of National Mission on Agricultural Extension
& Technology (NMAE&T)



Other Key Focus Areas (Quality
Assurance)
Strengthening core Competency of Farm Machinery
Training and Testing Institutes (FMTTI): Quality
Assurance, Performance Testing of newly developed
equipment
Introduction of self certification for reputed
manufacturer;
Expanding network of Farm Equipment Testing
Centers: Currently 28 SAU/ICAR Institutes/State Agencies
are nominated to test/certify non-self propelled/non
motorized equipment


Collaboration with ICAR and
Manufacturers for product development
and customization
Need for more products and commercialization
of developed products/technologies

Other Key Focus Area: Research &
Development
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
Providing choice to farmers to select
brand/equipment
Promoting Custom Hiring Centres
rather than distributing Tractors at
high top up subsidy
To develop Village and SMF
orientation
State Related Issues
Unfolding Future
Tilling, Sowing, Rice Transplanting,
harvesting, Transportation ?

We provide one stop solution- Attractive
package

ABC Farm Services
(99999 88888 /
1800 800 1234)
India, 2020
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