Gajendra singh patna agricultural mechanization in india and future prospects

Development of Agricultural Mechanization in India and Future

Prospects

by

Gajendra Singh

email: [email protected]

India:GDPPer Capita Income: US$ 1400 (PPP: US$ 3800)4th Largest Economy on PPP basis ($ 5.5 trillion) after USA, China and Japan. 10th Largest Economy: $ 2 trillion; Savings rate: 30%. Agriculture contributing:14% (with 50% workers); Service sector contributing: 60% (27% workers); Industry: 26% (24% workers); Manufacturing:15%

USA: Agricultural workers: <2%; 41% in 1900.World Service GDP: 66%; Employment: 44% World Agriculture GDP: 6.2%

GDP, Employment and Value Added per Person in Agriculture, Industry and Service Sectors of Selected Countries. Source: World Bank (2014)

Country Percent GDP Percent Employment Value Added per Person, $

Agriculture Industry Services Agriculture Industry Services All workers

Agriculture

Bangladesh 17 29 54 39 21 40 829 505

China 10 44 46 34 30 36 6807 785

India 14 26 60 50 21 29 1504 697

Korea 2 39 59 6 24 70 25977 27097

Nepal 35 16 49 67 11 22 694 265

Pakistan 25 22 53 44 22 34 1300 1080

Sri Lanka 11 32 57 32 26 42 3280 1041

Japan 1 26 73 5* 25 70 40000 46000

*Japan has a very large number of hobby (weekend) farmers who have regular job outside agriculture

Beginning of MechanizationThe first tractor to India was brought in 1914.

In 1930’s pump-sets were introduced.

In the 1940’s high hp crawler tractors wereimported under the aegis of Central Tractor Organization mainly for land development and to eradicate obnoxious weed kans grass. There were only about 8,000 tractors in 1950. Manufacturing of irrigation pump-sets started in late 1950’s. Tractor manufacturing stared in 1961.

Item 1960 1970 1980 1990 2000 2010Agricultural land (million ha)

133 140 140 143 143 142

Irrigation pumps (million) 0.4 3.3 6.2 12.9 19.5 25

Irrigated area (percent) 19 22 28 33 34 35

Cropping intensity 1.15 1.18 1.23 1.30 1.33 1.39

Fertilizer use (kg/ha) 2 15 39 88 125 140

Grain yield (kg/ha) 700 860 1 000 1 300 1 600 1 900

Tractors (thousands) 37 146 531 1 200 2 600 4 000

Area per tractor (ha) 3 600 960 260 120 55 36

Power tillers (thousand) 0 9.5 16 31 100 200

Draft animals (million) 80.4 82.6 73.4 70.9 60.3 50

Aspects of Indian Agriculture (1960-2010)

Production of tractors (4-wheel) in India (Source: Tractor Manufacturers Association)1961 880 Tractors1970 20,000 Net importer upto 19761980 71,000 Exports started: Africa1990 140,000 Exports grew upto 7,000/year2000 256,000 Exports grew upto 50,000/year2010 548,000 USA, Malaysia,Turkey, South 2011 640,000 Asian and African countries2012 579,000 Exports about 63,300 tractors2013 699,000 Exports about 62,700 tractors2014 613,000 Exports about 77,500 tractors2015 572,000 Exports about 75,400 tractorsOf global production of tractors India produces more than 1/3rd of total tractors and more than 50% of <60 hp category. India is the biggest producer of tractors in world.Mahindra is #1 company producing tractors worldwide.

Trend in Farm Power Availability in India

Share of agricultural worker & draught animals came down from 60.8% in 1971-72 to 10.1% in 2012-13; Source: CIAE, Bhopal

8

Human Labor

Animal Power

Engine (Petrol/ Diesel)

Elect. Motor

2-Wheel1-Axle Tractor

4-Wheel2-Axle Tractor

Self Propelled Machine

LP: 20 %SW: 20%TH: 10%TR: 30%

IR: 35-40%TH: 15%SPP: 5%

IR: 45-50%TH: 10%

L P: 20%SW: 10%WD: 10%TH: 5%

LP: 60 %SW: 50%WD: 30%HRR: 20%TH: 20%TR: 60%

HRC: 35-50%BCS: 20%

(Rice)TPR: 60-70%: SP: 10%; SPK: 85% HR: 35-40%TR: 10%

Level of Mechanization of Different OperationsLand Preparation (LP), Irrigation (IR), Threshing (TH), Harvesting (HR), Sowing (SW),Transport (TR), Weeding (WD), Spraying (SP), Broadcast (BC), Transplanting (TP)

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Cereal Yield: Decadal average

1960-70 1970-80 1980-90 1990-00 2000-11

Figure 1.2 Average of cereal yield over decades(Source: FAOSTAT and World Bank, 2013)

Cereal yield, measured as kilograms per hectare of harvested areaincludes:wheat, rice, maize, barley, oats, rye, millet, sorghum, buckwheat and mixedgrains. Production data on cereals relate to crops harvested for dry grain only.

Indian Agriculture: Present StatusGrain production (2013-14): 264.4 million tonsStorage capacity: 65 million tonsHorticultural Production: 265 million tonsCold Storage capacity: 30 million tonsMilk Production (2013-14): 132.5 m tons (#1 Producer)

During last 15 years agricultural products:Imports: about 3-8% of total importsExports: about 11-20% of total exportsAgri. Trade surplus about US$ 23 billion (2013)

Main imports: vegetable oils and pulses.Main exports: cereals, marine products, oil meals, cashew and tea.

Mechanization technologies were first adopted by the large farmers [over 10ha farm size] followed by medium scale farmers [4 to 10 ha farm size]. Water lifting was the highest priority for mechanization followed by threshing, transport and tillage.

The large numbers of such farmers in states likePunjab, Haryana and Western Uttar Pradesh playeda critical role in facilitating the creation of a viable agricultural machinery and implements distributionand services sector. Such farmers were also the ones who were able to provide mechanization and other services to the more numerous semi medium[2 to 4 ha farm] and small holder farmers [1 to 2 ha]farmers.

Projections for Mechanization in India Item 2010 2015

2020 2030 2050

Draft Animals (millions) 50 45 30 20 10

Tractors (millions) 4.0 5.2 5.5 6.5 7.0

Power Tillers (millions) 0.2 0.4 0.8 1.5 2.0

Diesel Engines (millions) 6.8 7.0 7.3 7.8 8.5

Electric Motors (millions) 18 21 28 35 40

Power (kW/ha) 1.8 2.0 2.8 4.0 5.0

Policies Supporting MechanizationEstablishment of Agricultural Engineering institutions for HRD for education, research and extension and creating awareness in industry and promoting their establishment.

No industrial license required to establish a new manufacturing facility. Major farm equipment manufacturers have plants in India (JD, CNH Industrial, SAME-D-FAHR, CLASS, etc.).

Minimum support price for major crops.

Subsidized electricity for irrigation pumps.

Policies Supporting Mechanization

BIS standards; Testing facilities (4 GOI+29 at Ag. Eng. institutions); Training and Extension

Rate of subsidy: about 25% with limit on amount;

Sub-Mission on Agricultural Mechanization (SMAM): Subsidy to Small, Marginal, SC/ST and Tribal farmers on farm equipment upto 40%;

Financial Support / Subsidy to Entrepreneurs to establish custom-hire centers and Hi-Tech. machine centers.

Priorities for Future MechanizationConsolidation of fragmented holdings.

Bio-fuels from sugarcane and agricultural residues; Biogas, solar and wind energy.

Farm production techniques with low energy requirement: Minimum tillage, Zero till planting, Conservation agriculture.

Higher water use efficiency: Laser land leveling, Micro irrigation.

Higher fertilizer use efficiency: Seed-cum-fertilizer drills, Fertigation.

Priorities for Future Mechanization due to shortage of laborCustom-hire services; Consolidation of holdings

Nursery for rice seedlings, vegetables seedlings and transplanting; Protected cultivation.

Sugarcane harvesting, Cotton picking, reaping of grain crops, harvesting and post harvest handling of horticultural crops.

Mechanization of animal husbandry and fisheries operations.

Mechanization for hill agriculture and small plots.

Future Policy 1Business and enterprise friendly policies, laws, and regulations;

Physical and institutional infrastructures which encourage commercial activities;

Entrepreneurship in farming, input supply, produce handling, processing and marketing and in manufacturing.

Future Policy 2

Reduce subsidies and invest in infrastructure, mainly, roads, electricity supply, irrigation systems and markets with storage and processing facilities in catchment areas.

Reduce interest rates on loans and taxes for purchase of equipment and machinery for agricultural operations and food processing.

Continue to provide assured support prices for the farm produce.

Future Policy 3Strengthen support services for research and development; for testing and standards; and for human resources development in support of agricultural development.

Promote entrepreneurship to provide custom hire services (Taxi model). Provide financial and technical support to private enterprises.

ChallengeMain challenge will remain to increase food production to feed the growing population.

With sufficient food stocks the big challenge is to curve wastage, provide adequate access and ensure judicious distribution of food.

Urgent need is to improve the income of >100 million farm families (>250 million workers) cultivating 142 million ha land; >50% work force contributing only 14% to GDP.

Sustainable Agricultural

Mechanization

Sustainable production

intensification

Optimum use of farm inputs

Environmental friendly

agricultural management

Conclusion

Thank You

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