Research & Development needs In Farm Mechanization Escorts Ltd, India 1
Jan 18, 2015
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• Indian Agriculture - Snap Shot
• Tractor Market Trend
• Farm Mechanization Potential and R&D
interventions required
Indian Agriculture Strengths
• Highest Arable Land - 47% of total land against Avg. 11 % in the world
• Round the Year Cultivation - 20 Agro-climatic regions and 46 Soil types suited for round the year cultivation
• Ranks first in production of Pulses, Tea, Jute and allied fibers
• Second largest producer of Wheat, Rice, Groundnut, Fruits and Vegetables, Sugarcane & Third largest producer of Mustard, Potatoes, Cotton lint, etc.
• 102.8 Million Cultivators, over 7.5% own > 4 ha. Avg farm land size <2 ha,
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LARGE > 10 ha (1.2 mil)
Medium 4-10 ha(6.3 mil)
Semi medium 2-4 ha(13.1 mil)
Small 1 -2 ha( 20.9 mil)
Marginal < 1 ha(61.3 mil)
Bottom of Pyramid Country; Affordability, Equipment size are key to success. Emerging Cooperative Ownership model / custom hiring use high end equipment
Average Land Holding and Number of Farmers
The Agricultural Equipment market is driven by several factors
5GOVT. INVESTING 300 Mil $ PER DAY IN RURAL DEVELOPMENT INCLUDING FINANCING
Potential Exists in Improving Farm Power per Hectare
Source : World Bank
WestGermany
Italy
UKFrance
Poland
Korea
USATurkey
BrazilRussia
Pakistan
India
Even at this level India is the largest producer of tractors in the World
0
0.5
1
1.5
2
2.5
3
3.5
4
4.5
OR CG RAJ MAH BIH GUJ MP KAR ALL INDIA
UT AP UP HAR PUN
Farm Power Availability (kW/ha)
Yield (t/ha)
Impact of mechanization on productivity
Direct correlation of higher productivity with higher Mechanization level
Source: Indiaagristat.com
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Crop Scenario
Paddy Wheat
2988.66590.1
4365.0
2040.1 9000
1603.3
5143.4 2318.1
2976.72840.8
India very low onProductivity
* Figures represents Yield of major crops during 2009 ** Yield is defined as kg/haSource: FAOSTAT
Opportunity for adoption of Technology
Largest Tractor Market in World, Set to cross 500,000 tractors a year mark,
Indian Tractor Industry Trend
10
612
656
678
690
712
734
756
790
812
834
856
878
890
912
934
956
978
990
'012
034
056
078
0910
1718
0
100
200
300
400
500
600
700
800
900
1000
In T
ho
usa
nd
s
Cut in Im-port
Credit Squeeze
Restrict Fi-nance
Draught, market correction
Famous Re-cession
Exponential trend line
Polynomial trend line
TIV is growing @ 20% plus
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Horse Power Segment Trend
Shift towards higher HP is evident due to increased tractor usage
Huge opportunity at entry level, virgin sub 15 HP segment replacing bullock
2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11
10.5 8.6 7.9 7.8 6.7 7.3 7.2 7.0
14.412.6 12.0 12.7 11.7 12.6 12.3 10.5
33.6 34.3 34.1 32.531.8 31.6 31.9
31.5
24.4 26.2 26.8 26.425.5 24.1 24.4
25.5
10.7 11.2 12.4 13.114.5 12.6 12.1 13.5
7.011.8 12.0
>50HP45-50HP41-45HP36-40HP31-35 HP25-30 HP
Indian Agriculture : key vectors and critical success factor
Increase in Production
Productivity increase [Yield/ha]
Enhancing Cropping intensity
Efficient & mechanised operationsCritical Success Factor
Key Vectors
Objective
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Timeliness Efficient input use &
placement Crop cycle management Reduce losses
Shorten crop cycle – short duration varieties
Efficient water management
leads to
Tillage& seedbed
Preparation
Sowing/ Planting
Fertiliser Application Irrigation Harvesting Post
Harvesting
Inter Cultivation
Plant Protection
Gaps in Farm Mechanisation - Mechanisation levels
CropCycle
Level
All CropsCrops
Tractor Usage
Mech LevelHigh Low
Tillage& seedbed
Preparation
Sowing/ Planting
Fertiliser Application Irrigation Harvesting Post
Harvesting
Inter Cultivation
Plant Protection
Gaps in Farm Mechanisation - Mechanisation levels
CropCycle
Level
Levelling Land reclamation Sub soiling Raised beds
Mech.Gaps
All CropsCrops
Tractor Usage
Mech LevelHigh Low
Tillage& Seedbed
Preparation
Sowing/ Planting
Fertiliser Application Irrigation Harvesting Post
Harvesting
Inter Cultivation
Plant Protection
Gaps in Farm Mechanisation - Mechanisation levels
CropCycle
Level
Mech.Gaps
Crops
Tractor Usage
Transplanting Rice Horticulture
Planting Sugarcane Potato & Root Crops
Plastic Mulch & planter
GrainsHorticultureCash Crops
Mech LevelHigh Low
Tillage& Seedbed
Preparation
Sowing/ Planting
Fertiliser Application Irrigation Harvesting Post
Harvesting
Inter Cultivation
Plant Protection
Gaps in Farm Mechanisation - Mechanisation levels
CropCycle
Level
Mech.Gaps
Crops
Tractor Usage
Spreaders
Manure Fertilizer
All Crops
Mech LevelHigh Low
Tillage& Seedbed
Preparation
Sowing/ Planting
Fertiliser Application Irrigation Harvesting Post
Harvesting
Inter Cultivation
Plant Protection
Gaps in Farm Mechanisation - Mechanisation levels
CropCycle
Level
Mech.Gaps
Crops
Tractor Usage
Conservative farming
Sub surface Irrigation
Sprinkler
All Crops
Mech LevelHigh Low
Tillage& Seedbed
Preparation
Sowing/ Planting
Fertiliser Application Irrigation Harvesting Post
Harvesting
Inter Cultivation
Plant Protection
Gaps in Farm Mechanisation - Mechanisation levels
CropCycle
Level
Mech.Gaps
Crops
Tractor Usage
Sprayers
Dusters
All Crops
Mech LevelHigh Low
Tillage& Seedbed
Preparation
Sowing/ Planting
Fertiliser Application Irrigation Harvesting Post
Harvesting
Inter Cultivation
Plant Protection
Gaps in Farm Mechanisation - Mechanisation levels
CropCycle
Level
Mech.Gaps
Crops
Tractor Usage
Tiller
Weeder
Ridger
Row CropsHorticulture
Mech LevelHigh Low
Tillage& Seedbed
Preparation
Sowing/ Planting
Fertiliser Application Irrigation Harvesting Post
Harvesting
Inter Cultivation
Plant Protection
Gaps in Farm Mechanisation - Mechanisation levels
CropCycle
Level
Mech.Gaps
Crops
Tractor Usage
Digger
Harvester
Pickers
Balers
Reapers
Crops exceptCereals
Mech LevelHigh Low
Tillage& Seedbed
Preparation
Sowing/ Planting
Fertiliser Application Irrigation Harvesting Post
Harvesting
Inter Cultivation
Plant Protection
Gaps in Farm Mechanisation - Mechanisation levels
CropCycle
Level
Mech.Gaps
Crops
Tractor Usage
Grader
Dehusker
Cleaner
Dryer
All Crops
Mech LevelHigh Low
Customer Needs Across Ag Value Chain
Tillage& Seedbed
Preparation
Sowing/ Planting
Fertiliser Application Irrigation Harvesting Post
Harvesting
Inter Cultivation
Plant Protection
CropCycle
RiceHorticulture
Sugarcane Potato
Maize , cereals
GrainsCottonHorticultureSugarcane PotatoMaize Straw/stalksForage
All Crops
All Crops
StorageTrash Management
MechanisationHigh Low
All Crops
All Crops
Crop Care
Harvesting, Crop Care and Seeding are top priority for the farmer
Bushy Hybrids
Changes required in Ag Practices (1/2)
• 4 /5 ft row spacing
• Erect varieties
Compact hybrids withprecision planting
Cotton
Sugarcane
Vegetables
Optimal spacing for machine entry
Area of Collaboration
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• Appropriate technology requirement
• Source
Identify
• Evaluate adaption• Indigenize for cost
competitiveness
Adapt• Performance
validation• Propagate for
adoption
Validate
Individually Govt. and Private sector is doing their bitNeed to develop synergy for effective resource utilization and implementationEducate farmers about correct farm machinery and practices
Sum Up
• The face of Indian Agriculture has changed in the past 5-10 years. • Mechanized solutions are fast replacing the traditional labour
intensive solutions.• Tractor usage and demand is growing steadily. Tractor driven and
self propelled farm equipment are needed at every stage in crop cycle
• Robust R & D input require for adaptation/developing appropriate implements/farm machinery – Research institutes may offer design and testing facilities/undertake specific projects.
• Need to build synergy between Govt. institutes and Private sector for effective utilization of resources.
• Govt. Institute can propagate new farm practices for adopting new technology
• Create a window for sharing information
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