The PPT covers status of farm mechanisation in India along with global markets and various aspects related to farm machinery in India.

1. Status of Farm
Mechanisation in
India
Prepared By:
Sushant Chandra
PGDMA-1947
ICAR-NAARM

2. Content
Farm Mechanisation
Global Scenario
National Scenario
Key Players
FaaS
Policies
Recommendations

3. What is Farm Mechanisation?
According to FAO
“Farm mechanisation is the process of improving farm labour productivity
through the use of agricultural machinery, implements and tools.
It involves the provision and use of all power sources and mechanical
assistance to agriculture, from simple hand tools, to animal draught power
and to mechanical power technologies.”
http://www.fao.org/tc/exact/sustainable-agriculture-platform-
pilot-website/energy-management/mechanization/en/
Farm Power Availability (kW/ha) =
{(Number of agricultural Worker × 0.05) + (Number of
draught animal × 0.38) + (Number of Tractors × 26.1) +
(Number of Power tillers × 5.6) + (Number of electric motor
×3.7) + (Number of diesel engine × 5.6)} / Available
cultivated land in ha.

4. Need for Farm
Mechanisation
● Increases Agricultural
Productivity
● Less labour intensive
● Fast operation
● Better income
● Better crop intensity
● Precision Farming

5. Global Scenario
Of Farm
Machinery
Market
● Farm Machinery Market USD 200
Billion (FY19)
● Predicted CAGR of 9% (FY19-25)
● Largest Markets Europe, Asia-Pacific
& North America
● Europe holds 30% of global market
share
● Tractors constitutes largest share
(55%)
Mechanization: Key to higher productivity to double farmer’s income, FICCI
2017; industry reports and PwC analysis

6. Current status of mechanisation vs contribution of
agriculture to GDP
World Bank Open data 2019, FederUnacoma, PwC analysis

7. Global Scenario
Of Farm
Machinery
Market
Market Segmentation of Global Farm Equipment Market
FICCI PwC Knowledge Paper 2019

8. Forecasted
Market Size
Current and forecasted market size of global and
Indian farm equipment market at 9% CAGR and 6%
CAGR respectively (in USD billion)
FICCI PwC Knowledge Paper 2019

9. Key features and growth rate of tractor industry
worldwide in FY19
Percentage change in volume compared to FY18 World Bank Open data 2019, FederUnacoma,
PwC analysis

10. Global Trade of
Farm Equipment
FICCI PwC Knowledge Paper 2019

11. Global exports
of farming
equipment in
FY19
FICCI PwC Knowledge Paper 2019

12. National
Scenario
● Indian farm equipment market is worth USD 13
Billion
● Likely to grow at CAGR of 6%
● Reaching USD 18 Billion by 2025
● Overall mechanisation level 40%
● Largest in global production (1/3)
● Organised market size (8 lakh tractors)
● Highly unorganised market of threshers
● Market share of tractors is 81.4%
● Holds 35% of global volume of tractors

13. National
Scenario
Segmentation of market share of tractors based on
HP capacity for India (FY17)

14. Farm power availability state wise
More than 2.025 kW/ha
Between 1.726-1.00 kW/ha
Between 2.025-1.726kW/ha
Less than 1 kW/ha
Assessment of SMAM WAPCOS & MoAFW,2018

15. Farm power availability vs food grain productivity
Assessment of SMAM WAPCOS & MoAFW,2018

16. Correlation between farm power availability and
crop yield in India
FederUnacoma (2019), MoA&FW, Mechanisation and
Technology Department *Targeted plan to achieve in 2030

17. Agriculture value chain and types of equipment required

18. Crop-wise and region-wise adoption of mechanisation
FICCI PwC Knowledge Paper 2019

19. Distribution channels for farm equipment
OEMs
Dealer’s
Network
Customer
Retail

20. India as exporter
Of Farm Equipment
● Total trade value of USD 131 million
● Grew at CAGR of 6% (FY11-19)
● India exported 92,095 units of tractors (FY19)
● Exports of combine harvesters grew at a CAGR of
15% (FY14-18)
Major export destinations
Sectoral Paper on Farm mechanization-NABARD, Dec 2018

21. Key Players
Kotak Institutional Equities

22. Farming as a Service: Making services affordable to small and
marginal farmers
Located in
radius of 50 Kms
40,000 CHCS
More than
1,20,000
equipments
Increasing
income
Availability of
equipments
CHC
AGRI
Machinery

23. Farming as a Service: Making services affordable to small and
marginal farmers
Platform For Agri
Equipment
Scheduling And
Monitoring
Customisation
Lead to 25%
improvement in ROI
20% reduction in
field team required
Uber for farm
equipment' platform
Gold
Farm

24. Farming as a Service: Making services affordable to small and
marginal farmers
300 Centres in
Rajasthan
Operations in
Sugarcane with
DCM Shriram in UP
over 5 lakhs acre
100 centres in MP
One centre has
reach of 8-10
villages
Reduction in time &
cost
EM3
Agri
Services

25. Sub- Mission on Agricultural Mechanization(2014-15)
National average of 2.02
kW/ha to 2.50 kW/
ha by 2022 and 4.0 kW/ha
by 2030
Creating awareness among
stakeholders through
demonstration and capacity
building
activities.
Disbursement of subsidy
through state departments
of agriculture for purchase
and distribution of farm
implements
State departments of
agriculture, farm machinery
testing and training institutes
(FMTTM),selected agricultural
universities and ICAR
Training, testing and
demonstrations of farm
machinery and equipment
05
01
02 03
04
Final report on Monitoring, Evaluation and Impact assessment of
SMAM, M&T Division, MoA&FW, May 2018

26. National Food Security
Mission (NFSM)
Assistance (up to 50% the cost
of machinery) to be provided for
machinery such as pump sets,
tractor mounted sprayers, seed
drills, zero till seed drills to
varying degrees.
Assistance for large
equipment (tractors, combine
harvesters, sugarcane
harvesters,
cotton pickers, etc.) is
available for establishing
custom hiring centres
(CHCs)
Rashtriya Krishi Vikas
Yojana (RKVY)
60% assistance from the
Centre and 40% from the
state
Assistance is provided for
procurement of power-
operated machines and
tools,besides for import of
new machines.
associations, farmer groups,
SHGs, women
farmer groups (with more
than 10 members), etc., that
are engaged in cultivation of
horticulture crops.
Mission for Integrated
Development of
Horticulture (MIDH)
60% assistance from the
Centre and 40% from the
state
60% assistance from the
Centre and 40% from the
state
Other Policies

27. Improving
access to finance
Recommendations
Upgrading skills
Future ready
Farm
mechanisation
Forging PPP
models
Efficient scheme
implementation and
delivery
mechanism