Agri COOP Presentation on Farm Mechanization Before Parliamentary Consultative Committee (Jan-2013)

8/11/2019 Agri COOP Presentation on Farm Mechanization Before Parliamentary Consultative Committee (Jan-2013)

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Mechanization and Technology Division

Dept. of Agriculture and Cooperation

Ministry of Agriculture2013

Farm Mechanization in India:


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Unfolding Future of Mechanized Farms


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Tillage &

seedbed

Preparation

Sowing/

PlantingFertiliser

ApplicationIrrigation 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


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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

2,47,5312,96,080

3,52,835 3,46,501 3,42,8363,93,836

5,45,1096,07,000

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

17,48122,303

24,791 26,135

35,29438,794

55,00060,000

POWER TILLERS


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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

36.7738.45 41.67

10.7915.82

24.84 26.31 25.66 25.13

Electric motors

Diesel engines

Power TillersTractors

Draught Animals

Agriculture Workers

Share of agriculturalworker & draught

animals came down

from 63.5%in 1971-

72 to 13.67% in

2009-10


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Comparison of Mechanization with Other

Countries

Source: FAO Yearbook 2003

Sl. No. Country Farm Power No. of Tractorsper 1000 Ha.

No. of CombineHarvesters per

1000 Ha.

(kW/Ha)

1 India 1.36 15.75 0.026

2 Japan 8.75 461.22 236.983 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


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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


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Advantages of Farm Mechanisation

Improves utilization efficiency of inputs such asseeds, 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


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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 %;


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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

0.5220.71

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

FoodgrainYield (T/ha)

Farm Power(Kw/Ha)


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Need For Accelerated Farm Mechanization

Positive correlation between farm power availability andagricultural productivity

Addressing scarcity of agricultural labour (MNREGA)

Climate Change Mitigation (less sowing window, quickharvesting, 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)


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2294

15551662

1530

1008

1987

1560

3383

1297

14051330 1377

2470

1285

1039

17961809

1047

1256

1397

4144

931

1496

24772544

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

WBKeralaTripura

AP

UP

NationalAverage: 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)

UttarakhandManipurMeghalaya

Low Mechanisation & Low Yield: 17 States

Farm Power ( Kw/ha)

FoodgrainYield(Kg/ha)


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Tillage &

seedbed

Preparation

Sowing/

Planting

Fertiliser

ApplicationIrrigation Harvesting

Post

Harvesting

Inter Cultivation

Plant Protection

Level of Farm Mechanization in India

Overall about 40-45%


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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

0.420.59

0.91

1.351.5

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)


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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


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Ongoing Programmatic Interventions

Orientation towards Individual Ownership : MacroManagement of Agriculture (MMA), National Food

Security Mission (NFSM), Rashtriya Krishi Vikas Yojna

(RKVY):

Small and Marginal Land Holdings (


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Present Policy Environment: Institutional

Credit

Small/Medium Farmers : Low creditworthiness

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


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Stagnating Credit growth in Farm Mechanization

Source: NABARD, Annual Report 2009-10

Credit flows more freely to Crop or Working Capital Loan / ST Loan


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Balancing Adverse Economies of Scale : Custom

Hiring or Taxi Model

FICCI-YES Bank Report, 2009


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The Core Issues

Adverse Economies of Scale;Weak financial strength of majority of farmers

(SMF);

Lack of access to credit to Rural Entrepreneursfor setting Custom Hiring Centre;

Need for promoting appropriate Farm

Equipment: Low cost, region and crop specific,indigenous technology


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Policy Framework : Addressing Issues

Unbundling AgricultureServices from Farmers;

Facilitate Entrepreneurs toestablish Custom HiringCentre;

Facilitating rural entrepreneurs

Special incentives to Small and

Marginal farmers Focusing on village level

mechanization : low cost, regioncrop specific, indigenous

technology

Addressing adverseEconomies of Scale

Access to Credit

Promotion of appropriateFarm Equipment: Lowcost, region and cropspecific, indigenous


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Individual Ownership Vs Custom Hiring

Key Question is How to cater marginal and small

farmers who aggregate to > 80% of cultivators


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Sub Mission on Agricultural Mechanization

(SMAM)* : Key Interventions

1. Promotionand Strengthening of Agricultural Mechanisationthrough Training, Testing and Demonstration;

2. Appropriate Post Harvest Technology and Management

(PHTM);3. FinancialAssistanceor 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)


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Sub Mission on Agricultural Mechanization

(SMAM)* : Key Interventions

5. Creation of Hi-Tech, High Productive Equipment Hub forSpecific crops (Sugarcane, Cotton etc.);

6. Enhancing Farm Productivity at village levelby 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)


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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


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High women workforce in

agricultureboth in

production and processing

Ergonomically designed tools

and equipment for

Reduced drudgery

Enhanced safety & comfort

Other Key Focus Area : Gender-friendly

tools and equipment


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Providing choice to farmers to selectbrand/equipment

Promoting Custom Hiring Centresrather than distributing Tractors at

high top up subsidy

To developVillage and SMF

orientation

State Related Issues


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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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Thank you

Agri COOP Presentation on Farm Mechanization Before Parliamentary Consultative Committee (Jan-2013)

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Transcript of Agri COOP Presentation on Farm Mechanization Before Parliamentary Consultative Committee (Jan-2013)