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India’s agricultural sector is one of the most significant components of the country’s
economy, though its share in the GDP has been decreasing over the years. Nearly 60 per cent of
India’s population is dependent on agriculture for its livelihood. Performance of the agricultural
sector continues to have a crucial impact on the prices of essential goods and market demand for
various consumer products. Agricultural Equipment industry plays a key role in supporting the
performance of the agricultural sector in India. Farming activities are increasingly getting
mechanized, and the availability, quality and performance of agricultural equipment has an
increasing impact on improving the output and productivity of the agricultural sector. While
India manufactures and deploys a range of agricultural equipment across the industry value
chain, tractors and tillers are the two that constitute the bulk of the industry.
The Indian agricultural equipment industry covers the gamut of equipment used for
different activities across the agriculture value chain. The manufacturing of basic agricultural
implements is largely performed by village artisans and tiny units, small scale industries and the
State Agro-Industrial Development Corporations. The traditional artisans and small scale
industries rely upon their own experience, user’s feedback and government owned research and
development institutions for technological support. They typically operate out of their own
homes or basic establishments that are often without regular utility services. Medium scaleindustries operate in their own premises with adequate infrastructure, sometimes forming a part
of an industrial estate. They also have manufacturing and marketing facilities and employ skilled
manpower.
Products such as diesel engines, electric motors, irrigation pumps, sprayers and dusters
are produced in this sector. Complex products such as land development machinery, tractors,
power tillers, post harvest and processing machinery and dairy equipment are manufactured by
large players in the organized sector. These firms typically have large manufacturing facilities,
professional marketing network of dealers and provide effective after sales service. They also
have in-house research and development facilities or have joint ventures with advanced countriesfor technology up gradation. Mahindra & Mahindra’s Farm Equipment Sector (FES), which
designs, develops, manufactures and markets tractors for Indian and overseas markets, is the
largest manufacturer of tractors in India. Other major players include TAFE, New Holland, John
Mechanization refers to interjection of machinery between men and materials handled bythem. In agriculture, materials are soil, water, environment, seed, fertilizer, pesticides, growth
regulators, irrigation, agricultural produce and by-products such as food grains, oilseeds, fruits
and vegetables, cotton, sugarcane, jute & kenaf and other cash crops, milk, meat, eggs and fish
etc. There is scope of mechanization in every unit operation of production agriculture, post-
harvest and agro-processing, and rural living.
Mechanization has varied connotations. While in the developed world it tends to be
synonymous to automation but in developing countries, like India, mechanization means any
improved tool, implement, machinery or structure that assists in enhancement of workers’
output, multiplies the human effort, supplements or substitutes human labor that is enabling andremoving, avoids drudgery or stresses that adversely affect human mental faculties leading to
errors, imprecision and hazards and eventually loss of efficiency. It also means automation and
controls that assure quality, hygiene. Agricultural mechanization in a limited sense relates to
production agriculture.
1.3 Growth of Mechanization
1. Tractors
2. Levelers
3. Ploughs
4. Dozers
5. Scrapers
1. Drill
2. Seeder
3. Planter
4. Dibbler
5. Trans-
planter
1.Shovel/Plough
2. Harrow
3. Tiller
4. Sprayer
5. Duster
1. Harvester
2. Thresher
3. Digger
4. Reaper
5. Sheller
6. Sickle/Dao
1. Seed Extractor
2. Dehusker
3.Huller/Dehuller
4. Cleaner
5. Grader
6. Mill
7. Dryer
Over the years, the share of human and animal power in agriculture has reduced
drastically, paving the way for a variety of equipment to emerge. Many of these are driven by
tractors, diesel engines or tillers. Several of the traditional processes in agriculture have been
transformed with the advent of mechanization. For example:
Although water is a renewable resource, its availability in appropriate quality and
quantity is under severe stress due to increasing demand from various sectors. Agriculture is the
largest user of water, which consumes more than 80% of the country’s exploitable water
resources. The overall development of the agriculture sector and the intended growth rate in
GDP is largely dependent on the judicious use of the available water resources. While the
irrigation projects (major and medium) have contributed to the development of water resources,
the conventional methods of water conveyance and irrigation, being highly inefficient, has led
not only to wastage of water but also to several ecological problems like water logging,
salinization and soil degradation making productive agricultural lands unproductive. It has been
recognized that use of modern irrigation methods like drip and sprinkler irrigation is the only
alternative for efficient use of surface as well as ground water resources. Hence, this scheme on
Micro Irrigation (MI), which aims at increasing the area under efficient methods of irrigation viz.
drip and sprinkler irrigation.
3.2 Nature of Scheme – Micro Irrigation Scheme
This is a Centrally Sponsored Scheme under which out of the total cost of the MISystem, 40% will be borne by the Central Government, 10% by the State Government and the
remaining 50% will be borne by the beneficiary, either through his/her own resources or soft
loan from financial institutions. In other words, out of the Governmental assistance, 80% share
(40% of unit cost) will be met by the Government of India (GOI) and the balance 20% (10% of
unit cost) will be met by the participating State Government. The concerned States shall make
available their share of 20% to the Implementing Agencies (IA) during the financial year.
3.3 Drip Irrigation
Drip Irrigation involves technology for irrigating plants at the root zone through emittersfitted on a network of pipes (mains, sub-mains and laterals). The emitting devices could be
drippers, micro sprinklers, mini sprinklers, microjets, misters, fan jets, micro sprayers, foggers
and emitting pipes, which are designed to discharge water at prescribed rates. The use of
different emitters will depend upon specific requirements, which may vary from crop to crop.
Water requirement, age of plant spacing, soil type, water quality and availability are some of the
factors which would decide the choice of the emitting system. Sometimes microtubes are also
used as an emitter, though it is inefficient. All types of surface and subsurface irrigation systems
The States have been given flexibility to develop & pursue activities on the basis of their
regional priorities. The States are free to include new interventions in their Work Plans provided
these are not covered under any other scheme of the Central Government or are not a part of any
ongoing State Scheme. The expenditure on any new initiative should not be more than 10% of
the total allocation to the State (for the year) under Macro-Management Scheme. As per
approved pattern, there would be a cap on subsidy to the farmers incorporated in the Work Plans.
Subsidy per farmer or per activity should not exceed 25% of the cost or the present subsidy level
approved under 27 identified schemes, whichever is lower. Besides, the subsidy is also availableon identified agricultural implements under the schemes of oil seeds production programme
National Pulses Development Project, Technology Mission on Cotton, Technology Mission on
Horticulture for North Eastern Region.
The following agricultural equipments are available on subsidy under Central Sector Plan
Schemes. The subsidy is available to the farmers @ 25% of the cost of equipment subject to
certain ceiling limits.
Table 4.1: Equipments covered under subsidy
S. No. Name of Implements/Machines
1. Tractor
2. Power Tiller
3. Power Drawn implements
4. Power Threshers (all types)
5. Sprinklers
6. Drip Irrigation
7. Animal drawn implements
8. Manually operated implements/ tools including Horticultural Tools