In 2019, INR 977 trillion of Indian Agriculture Equipment will be on the market. In recent years, substantial improvement has been made in the mechanism of agriculture. A substantial number of farmers in the country have already begun switching from the use of animal sources to mechanical machines to sustain their agricultural activities. The agricultural group typically uses mechanical machines for many farms such as tillage, sowing, irrigation, protecting the plants and threshing, etc.
The Agricultural Equipment Market has experienced significant growth in recent years as a result of growing developments in farm mechanisation. A variety of factors, including ease of credit access, public benefits, increased agricultural production, advent of contract agriculture, increased rural income etc are driving this sector. IMARC Group expects modest growth in Indian Agriculture Equipment Market in 2020-2025.
Drivers -Indian Agricultural Equipment Market:
- Labour Shortage:
Farmers have been calling for farm mechanisation for significant reasons of labour shortage. A large scale migration from rural to urban areas has resulted in a job shortage in rural areas and a number of rural employment schemes.
For example, the NREGA has had a rip impact in many ways – labour shortages that contribute to the mechanization of farming. In the vital seed and transplantation period, the introduction of this scheme reduced the inflow of migrant seasonal workers from Bihar and UP to countries such as Haryana and Punjab significantly. This has contributed to a major rise in demand for farm machinery in these nations.
- Ease of Financing:
A variety of banks and microfinance institutions have been set up in rural India in recent years. This has made it possible for farmers to buy agriculture equipment with loans.
- Government incentives:
The Indian Government also has been an important driver of India’s farm equipment markets in its stimulus in subsidies, low import duties on agricultural machinery and simple financing schemes.
- Income Rising:
In recent years, wages for rural households have slowly risen as a result of robust economic growth and agricultural production. Rising revenues have encouraged farmers to increase their agricultural mechanisation investment considerably.
- Large untapped market:
While the tractor penetration and associated equipment have continued to be very poor, in spite of strong growth in recent years. This will offer plenty of room for growth in the future.
- Emergence of Contract farming:
The farming can also provide the farming industry in India with a good boost. Contract farming would allow farmers to benefit with help from the contractor from technology, training and financing. The introduction of mechanised agriculture activities is supposed to be encouraged.
Market Summary:
- The industry is split by machinery into tractors, trucks, harvesters, planters, irrigation equipment and process equipment for wheat, spraying equipment, hay and drilling equipment, as well as other equipment.
- The market was divided into soil and seed bed planning, sowing and planting, weed growing, plant protection, harvesting and threshing and processing after harvest and agro processing on the basis of the application
- The markets in North India, South India, East India and West India have been segmented on the basis of area.
- The competitive business environment was also analysed and key player profiles were also presented.
