Date : 27/11/2023

Relevance: GS Paper 3- Economy- Mechanisation of Agriculture

Keywords: National Council of Applied Economic Research (NCAER), Krishi Vigyan Kendra, Farm Machinery, MSMEs

Context-

The recently released white paper by the National Council of Applied Economic Research (NCAER) sheds light on the substantial challenges faced by India's farm machinery industry in meeting the demands of small and marginal farmers.

Characterized by both demand and supply-side issues, the sector struggles with a farm mechanization rate of 40-45%, significantly lower than global benchmarks – 95% in the US, 75% in Brazil, and 57% in China.

Overview of the Farm Machinery Industry:

• The Farm Machinery Industry plays a pivotal role in agriculture, producing and supplying a diverse range of machinery, equipment, and tools essential for various farming activities.
• These include plowing, planting, harvesting, and more, with the overarching goal of enhancing productivity and efficiency. The industry caters to both small-scale and large-scale farming operations, offering products such as tractors, combine harvesters, irrigation systems, tillers, and more.

Challenges with the Farm Machinery Industry:

1. Skills Shortage:
   - The shortage of skills within the industry is a critical issue, creating a low-equilibrium trap. Village craftsmen, constituting the largest group at the industry's base, primarily supply, repair, and maintain farm machinery for Indian farmers.


2. Lack of Adequate Information:
   - Farmers often need more information and awareness about technology and machinery management. This results in poor machinery selection, rendering investments futile.


3. Lack of Skilled Personnel:
   - Micro, Small, and Medium Enterprises (MSMEs) face a shortage of skilled personnel. Semi-skilled workers, lacking proper equipment, often fabricate agricultural tools and machinery, posing challenges to ensure quality.


4. High Capital Cost:
   - Farm machinery's high capital cost poses a significant barrier, limiting farmers' ability to invest in new equipment. This hampers access to the latest technology and reduces overall farming efficiency.


5. Rapidly Changing Technology:
   - The dynamic nature of farm machinery technology necessitates continual research and development investments by manufacturers. Smaller manufacturers may struggle to keep pace, hindering innovation.


6. Dependence on Weather Conditions:
   - Farm machinery's efficacy is highly contingent on weather conditions, and adverse weather can cause delays and disrupt farming operations, leading to lost productivity and reduced profitability.


7. Maintenance and Repair:
   - Regular maintenance and repairs are essential for efficient farm machinery operation, imposing a financial and time burden, particularly on smaller farmers.


8. Environmental Concerns:
   - Growing environmental concerns, including using fossil fuels in farm machinery, urge manufacturers to develop more sustainable and environmentally friendly equipment.

The Way Forward:

1. Training Young Farmers/Owners/Operators:
   - Establish tractor training centers, Krishi Vigyan Kendras, and industry-led initiatives for training young farmers on machinery selection, operation, and servicing.
   - Disseminate information on mechanization developments, showcasing the availability of new and improved farm equipment for diverse applications.



Krishi Vigyan Kendra (KVK)

• A Krishi Vigyan Kendra is an agricultural extension center in India.
• The centers are associated with a local agricultural university and serve as links between the Indian Council of Agricultural Research and farmers to apply agricultural research in a practical, localized setting.
• All KVKs fall under the jurisdiction of one of the 11 Agricultural Technology Application Research Institutes (ATARIs) throughout India.
• A KVK can be formed under a variety of host institutions, including agricultural universities, state departments, ICAR institutes, other educational institutions, or NGOs.
• Currently, approximately 725 KVKs are working throughout India.
• A KVK must own about 20 hectares of land for the purpose of testing new agricultural technologies.

Agricultural Skills Council of India (ASCI)

• The Agriculture Skill Council of India (ASCI) is a Section 8 Not-for-profit organization working under the aegis of the Ministry of Skill Development & Entrepreneurship (MSDE).
• ASCI works towards capacity building by bridging gaps and upgrading the skills of farmers, wage workers, self-employed & extension workers engaged in organized / unorganized segments of Agriculture and allied Sectors.
• ASCI is contributing to nation-building through Skill Development in Agriculture especially at the times when the country's agriculture is experiencing stagnant growth, exodus of quality manpower to other sectors, changing climate with increased variability in production parameters and transformations in international agriculture markets.


2. Strengthening Front-line Demonstration:
   - Reinforce front-line demonstrations of farm machinery, providing hands-on training to users. This can catalyze the extension and adoption of farm power across different regions.


3. Addressing Skilling Shortages:
   - The Agricultural Skills Council of India should work at the district level to address skills shortages on the demand side.
   - Foster public-private partnerships with Custom Hiring Centres, and leverage Indian Council of Agricultural Research (ICAR) institutes for short courses addressing skills shortages.


4. Provisioning Technical Knowledge and Skills:
   - Collaborate with the District Industries Centre and local industrial clusters to ensure that Industrial Training Institutes (ITIs) offer courses aligned with the latest technical knowledge and skills.
   - Promote dual vocational skilling programs, particularly in tier-II and tier-III cities, benefiting industrial clusters. MSMEs can leverage the Apprentices Policy of the Central Government.

Conclusion:

The challenges confronting India's farm machinery industry are multi-faceted, encompassing skills shortages, information gaps, high capital costs, and environmental concerns. However, by adopting a strategic and comprehensive approach, the industry can overcome these hurdles and thrive. The proposed interventions, ranging from enhanced training programs to strengthened front-line demonstrations and addressing skills shortages, present a roadmap for the industry to evolve and contribute significantly to the country's agricultural landscape. As technology continues to advance, collaboration between stakeholders, innovation, and a commitment to sustainability will be crucial for the future success of India's farm machinery industry.

Source- The Indian Express