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April 21, 2023
The National Council of Applied Economic Research (NCAER) recently published a white paper to highlight that the farm machinery sector faces major challenges for solving marginal and small farmers’ demands. It is a sector that manufactures and supplies different types of equipment, tools and machineries used in farming and agriculture processes like planting, harvesting, ploughing, etc. The machines help in improving farming efficiency and productivity and the sector makes use of both large-scale and small-scale farming tools. Some of the products produced by this sector include combine harvesters, tillers, tractors, irrigation systems, etc.
Major Challenges to this Sector
• Skills Shortage - Skills shortage is a major problem that leads to lower growth rate within the sector. Village craftsmen make up the largest group within this sector and they help Indian farmers to repair, maintain and supply their farm equipment.
• Lack of Enough Information - Skills shortage is a major problem that leads to lower growth rate within the sector. Village craftsmen make up the largest group within this sector and they help Indian farmers to repair, maintain and supply their farm equipment.
• Lack of Skilled Personnel - There is a dearth of skilled manpower in Micro, Small and Medium Enterprises (MSMEs). Thus, semi-skilled personnel usually make agricultural machinery and tools without proper equipment. Hence, quality may be compromised in the fabrication process. Also, it is difficult to get qualified manpower for machinery testing.
• Increased Capital Cost - Farm machines are costly and that can discourage farmers from buying new equipment. It can lead to non-adoption of latest technology and lesser efficiency in farming processes.
• Fast Changing Technology - The technology in farm machinery is changing rapidly so that manufacturers have to continually spend in research and development. It can be demanding for small manufacturers as they may not possess the requisite resources.
• Dependence on Weather Conditions - Farm machinery greatly relies upon climatic factors and bad weather may disrupt or delay farming operations. It can further lead to reduced profitability and lost productivity.
• Repair and Maintenance - To keep them running efficiently and smoothly, farm machines need periodic repairs and maintenance. For smaller farmers, it can be time-consuming as well as costly as these farmers may not have the needed resources to maintain the machines properly.
Source - The ET & PIB