NCAER Report on Farm Machinery Industry

The latest NCAER report, “Making India a Global Powerhouse in Farm Machinery Industry,” was released on February 7.

The report examined the non-tractor farm machinery business from both the demand and supply sides, highlighting the sector’s problems.

Overview
- NCAER examined the non-tractor farm machinery business from both the demand and supply sides.
- In their report, highlights the sector’s difficulties and recommend steps and reforms based on worldwide best practices.
- The NCAER is one of India’s leading think tanks for economic policy studies.
- Mahendra & Mahendra funded the study of the NCAER Report on The Farm Machinery Industry in India.
- The Report emphasises, among other things, that India requires a vision for the next 15 years to transform itself into a production and export powerhouse for non-tractor farm machinery.
- The research also offers policies and changes based on global best practices.
- A committee of policymakers will review it to find the best solutions for farm mechanisation.

Agriculture/Farm Mechanisation
- Mechanised agriculture uses agricultural machinery to automate agricultural work.
- Improved agricultural equipment and technology are critical inputs for increasing mechanisation in the agriculture sector.
Significance
- It plays a vital role in optimising land use, water energy resources, manpower and other inputs like seeds, fertilisers, pesticides etc.
- It maximises the productivity of the available cultivable area.
- Hence, it makes agriculture more profitable and attractive for rural youth.

Limited Domestic Demand
- The needs of small and marginal Indian farmers are not met by what the organised farm machinery sector produces.
- Despite significant state-level variance, just 4.4% of farmer families in India had a tractor in 2018-19.
- In addition, 2.4% utilised a power tiller, and 5.3% owned one of the four machinery items.
Lack of Adequate Power
- The turnaround time is dramatically reduced when cropping intensity increases.
- Adequate farm power is critical for timely farm activities that increase production and productivity while decreasing losses.
- However, India’s agricultural electricity availability in 2018-19 is 2.49 Kw/ha.
- It is significantly lower than in Korea (+7 kw/ha), Japan (+14kw/ha), and the United States (+7kw/ha).
Dependence on Imports for Non-Tractor Machinery
- Tractors drive farm machinery exports, whereas non-tractor farm machinery imports drive agricultural machinery imports.
- Furthermore, trade is uneven, with China accounting for 53% of non-tractor farm machinery imports.

Steps taken by Government
- Farm mechanisation is being promoted by the Ministry of Agriculture and Farmers Welfare through various schemes and programmes such as SMAM, CRM, and Drones.
- Training and testing by FMTTIs of agricultural machines, including tractors, power tillers, combine harvesters etc., is noteworthy.
- The colleges have done outstanding work in testing and training, providing a pool of over 2.3 lakh trained workers in farm mechanisation.
Steps by Farm Industry
- The industry has also done outstanding work in increasing farm mechanisation in India, which is well acknowledged.
- The industry has demonstrated enormous ingenuity and zeal in bringing and developing appropriate technology, raising awareness, and lowering the cost of farm equipment for end consumers.

The government can improve the efficacy of several programmes that promote farm efficiency.
Suggestions from diverse stakeholders, such as farmers, topic specialists, research findings, and industries, can be considered when developing policies and initiatives.

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Content Source: PIB