Farm mechanization can be a viable solution to today's problems as well as future demands
Agriculture accounts for around 15.9 percent of India's USD 2.9 trillion GDP and 49 percent of overall employment. Because of fundamental changes in the economy, labor has shifted from agriculture to other sectors, and the labor market is in a severe shortfall during the peak harvesting season during this covid19 epidemic. As a result, the need to transform agriculture into a technology-driven industry with less reliance on labor is more vital than ever in order to achieve greater per-unit productivity and long-term growth.
Agriculture accounts for around 15.9 percent of India's USD 2.9 trillion GDP and 49 percent of overall employment. Because of fundamental changes in the economy, labor has shifted from agriculture to other sectors, and the labor market is in a severe shortfall during the peak harvesting season during this covid19 epidemic. As a result, the need to transform agriculture into a technology-driven industry with less reliance on labor is more vital than ever in order to achieve greater per-unit productivity and long-term growth.
According to FAO, in order to fulfill agricultural demand in 2050, this sector must boost food, feed, and biofuel output by about 50% compared to 2012. Demand is now felt as a result of variables such as population growth, disposable income, pricing, and consumer tastes, as well as other elements such as feed and industrial raw materials. However, with limited resources, meeting future demand for food, feed, and fuel will be extremely challenging.
The answer might be increased mechanisation and investment in new technologies to achieve optimal input usage efficiency and long-term productivity growth.
India is also a major producer of heavy machinery such as tractors, harvesters, and tillers. Farm mechanisation in India is still in its early stages, with just 40-45 percent compared to 90 percent in industrialized economies. Our agricultural equipment market accounts for 7% of the worldwide market, with tractors accounting for more than 80% of the value. Domestic tractor sales grew by 10% year on year, from 3 lakh units in FY09 to 8 lakh units in FY19. Many studies have found a favorable relationship between farm power availability (FPA) and agricultural production. In India, FPA has increased from 1.1 kW/ha in 1995-96 to 2.02 kW/ha in 2017-18.
The availability of agricultural power is directly proportional to the number of farm machinery, with tractors, power tillers, electric motors, and diesel engines receiving the most attention. Farm mechanisation appears as a productivity-boosting strategy in this industry. Leveraging mechanisation through bespoke hiring services increases agricultural production while also improving small and marginal farmers' acceptance and use of mechanised farming.
Despite the fact that we operate in a global market, the pandemic has disrupted the global supply chain, and with a new buzzword, 'vocal to local,' the manufacturing industry must locate their market locally. Rental businesses that have experienced a severe decline during this period may be able to partner with banking institutions to provide rent-to-own options. In the near future, the tractor sector may see a shared platform, but rental prices should be set to give equitable possibilities.
After-sales service is an important component in farm mechanisation to maintain customer relationships, but in these difficult times of social distancing, technology interventions like augmented reality (AR) present endless opportunities where a broken tractor can be attended by a local technician with guidance from experts from anywhere in the world. Artificial intelligence, automation, and the internet of things (IoT) can provide a platform for smart manufacturing, and data usage can pave the way for precision farming to enhance output per unit.
Every new possibility requires a course adjustment in order to be implemented. We may begin by properly regulating current programs such as the National Food Security Mission (NFSM), which provides up to 50% of the cost of machinery. The Rashtriya Krishi Vikas Yojana (RKVY) assists custom recruiting centers with huge equipment (CHCs). The Sub-Mission on Agricultural Mechanisation (SMAM) focuses on expanding the reach of agricultural mechanisation, raising awareness through demonstrations, and establishing centres for high-tech and high-value equipment.
Nearly 90% of tractor sales in our nation are made through financial schemes, but the availability of this benefit to all farmers remains a question mark because it is dependent on the farmer's financial profile and the back-ended subsidy assistance requires a greater initial investment. As a result, a strong credit guarantee program is necessary to ensure the smooth flow of credit to this industry.
Aside from that, working on a PPP model for bespoke hiring center establishment as a CSR effort for private players is possible. With a growing number of small and marginal landholdings, our research and development may focus on climate smart mechanisation, as well as crop and state specific mechanisation. To support and operate all of these services, current staff must be skillfully upgraded.
