2013-01-08 15:19:06 - The significant decline in the availability of labor for farm activities owing to their migration to industrial jobs and government support to the farmers in the form of high subsidies has given strong boost to the agricultural equipments market in India.
The Indian agriculture sector has witnessed a considerable decline in the use of human and animal power for agricultural activities in recent years. This has paved a way for a range of agricultural equipments that have been introduced in the market. For instance, land development, tillage and seedbed preparation which earlier used the power of animal driven plough and blade harrow now utilize the power of tractor through tractor driven equipments. Similarly, the irrigation of farmland has become widely automated by the use of diesel and electric motors and pumps. In FY’2011, the agricultural equipment market of India was estimated at 812,269 units by sales which grew at a CAGR of 12.3% during FY’2006-FY’2011. The high demand for key segments
such as tractors, power tillers, threshers, combine harvesters and rotavators have been majorly responsible in driving this growth.
“The easy availability of credit from banking institutions as well as NBFCs in the country has encouraged Indian farmers to buy agricultural machinery on credit. The government schemes such as NREGA have led to a huge shortage of the labor for agricultural activities and have also increased labor cost. Moreover, other schemes by government such as Macro Management of Agriculture (MMA) which provide monetary assistance of upto 50% to the farmers for the purchase of agricultural equipments has given considerable thrust to the farm mechanization process in the country” – according to the research report ‘India Agricultural Equipment Market Outlook to 2017 - High Labor Scarcity and Government Subsidies Driving Agricultural Mechanization’ by Ken Research.
The agricultural equipment market in India is expected to attain a high growth trajectory on account of continued shrinkage of farm labor due to the industrialization in the country and increased focus of government on agricultural equipments to enhance the food grain output so as to meet the growing food demand with the population.
The report provides detailed overview on the agricultural equipment market in the India and helps reader to identify the ongoing trends in the key segments of the industry and anticipated growth in future depending upon changing industry dynamics in coming years. The report will aid industry consultants, farm equipment manufacturing and marketing companies and other stakeholders to align their market centric strategies according to ongoing and expected trends in future.
For more information on the industry research report please refer to the below mentioned link: