Skills Shortage Holding Back Farm Mechanisation in India

The farm machinery industry in India faces challenges from both the demand and supply sides. Despite being the world's second-largest agricultural producer, mechanisation in India is only at 40-45%, much lower than countries such as the US (95%), Brazil (75%), and China (57%).

The NCAER has published a white paper titled 'Making India a Global Power House in the Farm Machinery Industry', which highlights a discrepancy between what small and marginal Indian farmers need and what the organised industrial sector produces, especially in the non-tractors segment.

The shortage of skilled personnel in the agriculture industry is a major problem that creates a low-equilibrium trap for the industry. The largest group of workers in this industry are village craftsmen, who are at the bottom of the pyramid and primarily serve Indian farmers by providing repair, maintenance, and supply of farm machinery.

Farmers often lack adequate information and awareness about technology and machinery management, which results in poor selection and wasted investments.

On the supply side, micro, small, and medium enterprises (MSMEs) face a shortage of skilled personnel. Fabrication of agricultural tools and machinery is often carried out by semi-skilled workers without proper equipment, and small-scale fabricators struggle to find qualified supervisors to monitor quality. Additionally, finding qualified personnel for testing machinery is a challenge.

To address demand-side issues in the agriculture industry, it is crucial to strengthen extension programmes. One way to achieve this is by assigning State agricultural universities, ICAR, and other institutes with tractor training centres, Krishi Vigyan Kendras, and industry (through their dealers) to train young farmers, owners, and operators on selecting, operating, and servicing farm machinery. They should also provide information about new and improved farm equipment for various applications.

Additionally, front-line demonstration programmes of farm machinery should be strengthened. Offering handheld training to users of new-generation farm machinery may encourage the extension and adoption of farm power.

To address the skills shortage on the demand side in the agriculture industry, there are various steps that can be taken. The Agricultural Skills Council of India can focus on addressing skilling shortages at the district level, and public-private partnerships with Custom Hiring Centres can be particularly helpful. ICAR institutes can offer short courses to bridge the skills gaps on the demand side, and Industrial Training Institutes (ITIs) can be utilized to address the skill gaps in repair and maintenance.

Promoting service centres at the regional and state levels in the private and industrial sectors can also be effective. This approach can reduce the need for each farmer to own machinery and learn individual skills for operating them. Service enterprises can also rent out machines with the associated package of services, creating employment opportunities for skilled youth in the region.

To address the skills shortage on the supply side, the District Industries Centre can collaborate with local industrial clusters to ensure that ITIs provide relevant courses with the latest technical knowledge and skills available.

Industrial clusters in tier II and tier III cities will gain tremendously from dual vocational skilling programmes. MSMEs should also take advantage of the Central Government's Apprenticeship Policy. For the youth, this may be a win-win situation.

NCAER's Bhandari is a professor, while Joshi is a Fellow. Personal opinions are expressed.

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