The Parliamentary Standing Committee on Agriculture, Animal Husbandry and Food Processing underscores the importance of mechanisation
The Parliamentary Standing Committee on Agriculture, Animal Husbandry, and Food Processing insists on the urgent need to increase the mechanisation of farms for small and marginal farmers in India. Their recent report highlights that wholesome mechanisation is not only essential but crucial to overcoming the multifaceted challenges faced by the farming sector, which plays a pivotal role in the country’s economy.
Despite India’s accounts for only 2.4 per cent of the world’s geographical area and 4 per cent of its water resources, its farming sector supports 17 per cent of the global population and 15 per cent of the livestock, contributing 20 per cent to the nation’s GDP and creating employability to 65 per cent population. Therefore, there is a dire need to enhance productivity and profitability through increased mechanisation among small and marginal farmers and in low mechanisation areas to revitalise Indian agriculture and boosting farmers’ incomes requires moving beyond traditional practices to advanced mechanisation.
Status of Mechanisation:
Our country’s agriculture mechanisation level is below 40 per cent lower than developing nations such as China 60 per cent and Brazil 75 per cent. It is worth noting that agrarian states like Punjab and Haryana had led the green revolution having mechanisation levels around 40 per cent, while in other areas such as the north-eastern states of India, it is negligible.
The Committee has pointed out that 86 per cent of the total land holdings are in small and marginal size groups, which require special efforts for their mechanization. They have emphasized that small farmers face significant difficulties in purchasing machinery unless machines appropriate for small holdings are made available or farmland consolidation takes place. It is expected to take another 25 years to reach the level of 75 per cent mechanization.
A Catalyst for Growth: The imperative role of farm mechanisation is instrumental in reducing cultivation costs and enhancing productivity through efficient resource utilisation.
Experts and committees have highlighted that agricultural mechanisation in India contributes to making judicious and cost-effective use of inputs, leading to savings in seeds by 15-20 per cent, in fertilisers, an improvement in germination rate by 7-25 per cent, savings in time by 20-30 per cent, in weed by 20-40 per cent, in labour by 20-30 per cent, an increase in cropping intensity by 5-20 per cent, and an increase in crop yield by 13-23 per cent. This also helps in the conservation of natural resources like water, soil nutrients, etc.
Farm Machinery Landscape:
The agriculture and allied sectors like livestock farming demand continuous modernization. The diversity in farming, whether large-scale or small-scale and rural labour scarcity necessitates a broad spectrum of agricultural equipment. From basic tractors to sophisticated combine harvesters, the sector requires a nuanced understanding of the equipment’s specific applications and requirements, spanning feeding equipment, poultry tools, corral systems for cattle and more attributed to the Indian agricultural machinery market is estimated to be worth a whopping US$16.73 billion in 2024 and is projected to reach an impressive US$25.15 billion by 2029.
Steps to Propel Mechanisation:
First, Establishment of the Directorate of Agricultural Engineering: The parliamentary Committee recommends that to monitor and implement the Government’s mechanisation policy effectively and efficiently, a Directorate of Agricultural Engineering is needed in each state. Currently, it only exists in Madhya Pradesh and Tamil Nadu, but the Indian Council for Agricultural Research (ICAR) is working towards establishing it in all states. Agricultural Engineers are also needed at Block and District Levels as there is no engineering manpower to demonstrate, train, help in repairs/maintenance and guide farmers at their doorstep.
Second, Farm Machinery Banks: Since farm machinery is expensive, small farmers find it difficult to purchase it. To address this issue, the Government has introduced custom hiring centres and farm machinery banks in almost all states, where farmers can share machines. However, the benefits of these schemes have not reached the gram panchayat level.
Third, Full-fledged Scheme: In September 2022, the Sub-Mission on Agricultural Mechanisation was merged with Rashtriya Krishi Vikas Yojana, which diluted its mandate. Therefore, the Government should establish a full-fledged Agriculture mechanism scheme to speed up the process.
Fourth, Funding for R&D: The budget allocation for the Research and Development (R&D) of the Farm Mechanisation Scheme has been declining steadily over the past four years, with a significant decrease of 30 per cent from 2019-20 to 2023-24.
Fifth, Tax and Duty Incentives: To promote low horsepower tractors, which are mostly used by small and marginal farmers and orchard growers, the tractor and its components attract 12 per cent GST. This means a small tractor costing about Rs 5-7 lakh leads the farmer to pay Rs 60-84 thousand as GST. GST can be reduced to nil or 5 per cent to make it more affordable for small farmers. Tax and duty incentives are also essential to support manufacturing units in low-mechanisation areas for sustainable growth.
In conclusion we can only agree with the Standing Committee.
The Parliamentary Standing Committee stresses the urgent need for enhanced farm mechanisation to support India’s small and marginal farmers. Despite its significant agricultural contribution, India’s mechanisation levels lag behind global counterparts, hindering productivity and profitability.
With 86 per cent of land holdings in small and marginal categories, targeted efforts are crucial. Mechanisation not only reduces costs but also enhances productivity and conserves resources. To drive mechanisation, the committee recommends establishing agricultural engineering directorates, expanding access to farm machinery through banks, revitalising existing schemes, boosting funding for research and development, and offering tax incentives. These measures are essential for revitalising Indian agriculture, increasing farmers’ incomes, and ensuring sustainable sectoral growth. By embracing comprehensive mechanisation, India can overcome multifaceted agricultural challenges and secure its position as a global agricultural leader while empowering its farming community.
-The Author is Vice-Chairman of Sonalika ITL Group, Vice-Chairman (Cabinet Minister rank) of the Punjab Economic Policy and Planning Board, Chairman of ASSOCHAM Northern Region Development Council and President, of Tractor and Mechanisation Association (TMA). Views expressed are personal.
