Economic growth in Indian agricultural
sector lags behind growth
in industry and services, creating an
ever widening rural-urban income
gap. Agricultural mechanization
plays a key role in improving agricultural
production and productivity
in developing countries. The average
farm size in India is small (1.16
ha) and small and marginal land
holdings (less than 2.0 ha) account
for 85% of land holdings. Mechanizing
small and non-contiguous group
of small farms is against ‘economies
of scale’ for individual ownership of
farm machinery. The status of farm
mechanization in India is analysed
by the trend in growth of mechanically
power-operated farm equipment
over traditional human and
animal power operated equipment.
It was observed that there was a direct
correlation between farm power
availability and productivity during
the past six decades. Haryana
state of India has the highest tractor
density per thousand hectare of
net seeded area of 84 tractors and
followed by 76 tractors for Punjab
against all India average of 33 tractors.
The sale of transplanter, power
weeder, combine harvesters, rotavator
and thresher in India is growing
at a compound annual growth rate
(CAGR) of 50, 50, 28, 20 and 10
%, respectively. The available farm
power and productivity in India are
expected to reach 2.2 kW/ha and 2.3
t/ha, respectively by the year 2020.
The widely fragmented and scattered
land holdings in many parts
of the country need to be consolidated
to reap benefits of agricultural
mechanization. There is a need to
innovate custom service or a rental
model by institutionalization for
high cost farm machinery such
as combine harvester, sugarcane
harvester, potato combine, paddy
transplanter, laser guided land leveller,
rotavator etc. to reduce the cost
of operation and can be adopted by
private players or State or Central
Organizations in major production
hubs. The farm machinery bank
may be established for machines
being manufactured elsewhere in
the country to supply in low mechanised
region on custom hiring basis.
Financial assistance or procurement
subsidy may be provided for the
purchase of agriculture machinery
and equipment on individual ownership
or custom hiring basis.