Farm Machinery Sector Projected to Reach ₹15,000 Cr by FY26

With an annual growth rate of 6% spanning over the past 7 to 8 years, India stands as the globe's leading tractor market, achieving a remarkable feat.

Recently, Hemant Sikka, the head of Mahindra & Mahindra's Farm Equipment Sector, highlighted the close connection between sustainable agriculture and mechanization in India.

Forecasts indicate that the Indian farm machinery industry will grow from ₹9,200 crore in FY22 to ₹15,000 crore in FY26, reflecting the sector's crucial role in ensuring sustainable agricultural progress. When asked about the role of automation technologies in the agriculture sector, he said that adopting technology can reduce manual work and fatigue, boosting productivity and efficiency, especially in smaller farming areas.

He further told that India has firmly secured its position as the world leader in tractor sales, surpassing a significant milestone of selling 1 million units. The rise in demand for tractors in India, driven largely by agricultural needs, has played a key role in achieving this remarkable accomplishment.

Mahindra's introduction of the OJA range, equipped with advanced technologies for diverse agricultural tasks, aligns with Sikka's vision of empowering small-scale farmers. Looking ahead, Sikka frames India's farm machinery growth as a response to declining agricultural labor.

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Sikka's insights extend to the intricacies of farm mechanization, where soil preparation takes precedence and some tasks still rely on basic tools and manual labor, varying by region. A significant step occurred in November 2022 with Mahindra launching a dedicated non-tractor farm machinery plant in Pithampur. This facility, strategically located in Pithampur, is designed to produce durable, high-quality, and affordable farm machinery under both Mahindra and Swaraj brands.

Sikka further said that this state-of-the-art plant enjoys access to a versatile supplier network. This advantageous location empowers them to craft resilient, top-tier, budget-friendly, and easily attainable farm machinery under the 'Made in India, for India' banner, available through both Mahindra and Swaraj brands. The investment of approximately ₹200 crore underscores the dedication to this initiative. The production line will feature items such as harvesters and rice transplanters.

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Amid these developments, Sikka's emphasis on the significance of India's leading role in the global tractor market remains strong, symbolized by crossing the 1 million-unit milestone.

He highlighted several factors including, the growing need for mechanization, addressing labor shortages, enhanced water availability from consecutive strong monsoons, rural infrastructure growth, profitable crop prices, government support for mechanization, and easier tractor financing.

Sikka sees mechanization as a solution to challenges, facilitating quicker agricultural operations. Mahindra's steadfast commitment to transforming agriculture is demonstrated by its effort to make cutting-edge technologies accessible to smaller landholders, supported by local manufacturing capabilities.

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