Date: 15/04/2023

Relevance: GS-2: Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation.

Relevance: GS-3: Farm mechanization; E-technology in the aid of farmers; Technology Missions.

Key Phrases: National Council of Applied Economic Research (NCAER), Farm Machinery Industry, Demand and Supply-side Challenges, Skill shortage, Agricultural Skills Council of India, Krishi Vigyan Kendras(KVK).

Context:

• The recently released National Council of Applied Economic Research (NCAER) white paper on ‘Making India a Global Power House in the Farm Machinery Industry’ reveals a mismatch between what the organized industrial sector is producing and what the small and marginal Indian farmers want.

Key Highlights:

• National Council of Applied Economic Research (NCAER) is India’s oldest and largest independent, non-profit, economic policy research think tank.
  • Established in New Delhi in 1956, It is one of a handful of think tanks globally that combine rigorous analysis and policy outreach with deep data collection capabilities.
  • NCAER has analyzed the non-tractor farm machinery industry from both demand and supply side perspectives, bringing out the challenges in the sector, and recommending measures & reforms by benchmarking global practices in their report.
• In India, Farm mechanization is at 40-45 percent, which remains low compared to the rest of the world; in the US it is 95 percent, Brazil 75 percent, and China 57 percent.

Farm Machinery Industry

• The Farm Machinery Industry is an industry sector which produces and supplies several varieties of machinery, equipment, and tools used in agriculture and farming activities including ploughing, planting, harvesting, and more.
  • These farm machines are designed to ameliorate productivity and efficiency in farming activities, and the industry encompasses both small-scale as well as large-scale farming equipment.

Demand and Supply-side Challenges:

• Lack of adequate Information and Awareness :
  • There is a lack of adequate information and awareness amongst farmers about the technology and the management of machinery.
    • Consequently, their selection of machinery is poor, often making it a wasted investment.
• Skills Shortage :
  • It is resulting in a low-equilibrium trap for the industry.
    • Village craftsmen, who fall at the bottom of the pyramid in the industry, form the largest group and are the ones who end up largely catering to the Indian farmers in terms of supply, repair, and maintenance of farm machinery.
  • On the supply side, micro, small, and medium enterprises (MSMEs) suffer from a lack of skilled personnel.
  • Fabrication of agricultural tools and machinery is often done by semi-skilled workers without proper equipment.
    • In the case of small-scale fabricators, there are hardly any qualified supervisors to monitor quality.
    • Finding qualified personnel for testing machinery is also a challenge.

Need of Hour:

• On Demand-side :
  • Extension programmes need to be strengthened to address demand-side issues.
    • State agricultural universities, ICAR and other institutes that have tractor training centres, Krishi Vigyan Kendras and industry (through their dealers) should be made responsible for training young farmers/owners/operators on how to select, operate and service farm machinery.
    • They should also provide information on developments in mechanization including the availability of new and better farm equipment for different applications.
  • The programmes of front-line demonstration of farm machinery should be strengthened.
  • Handheld training for users of new-generation farm machinery may encourage the extension and adoption of farm power.
  • The Agricultural Skills Council of India should work at the district level to address skills shortages on the demand side; public-private partnerships with Custom Hiring Centres may be especially useful.
  • ICAR institutes can offer short courses that address skills shortages on the demand side and Industrial Training Institutes (ITIs) can be leveraged to address the skill gaps in repair and maintenance.
  • Service centres at the regional and State levels may be promoted in the private and industrial sectors.
    • This will alleviate the need for each farmer to own machinery and learn skills to operate the individual machines.
    • Each centre can also rent out machines with the associated package of service.
    • Such service enterprises will also create jobs for skilled youth in that region.
• On Supply-side :
  • The District Industries Centre should work with local industrial clusters so that ITIs can provide relevant courses with the latest available technical knowledge and skills.
  • Dual vocational skilling programmes will greatly benefit industrial clusters located in tier-II and tier-III cities.
  • MSMEs should also leverage the Apprentices Policy of the Central Government.
    • This may be a win-win situation for the youth.

Conclusion:

• By implementing the recommended measures in an effective and efficient manner, India has the potential to become a production and export hub for non-tractor farm machinery in the next 15 years.

Source: The Hindu BL

Mains Question:

Q. What are the challenges faced by the farm mechanization industry in India? Suggest some measures to address these issues in an effective and efficient manner. (250 Words).