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NCAER Report on Farm Machinery Industry in India presented to MoS (Agriculture)

GS Paper 3

Syllabus: Agriculture: Farm Mechanization


Source: PIB


Context: NCAER (National Council of Applied Economic Research) has released a report on “Making India a Global Power House on Farm Machinery Industry”.

  • The report analyzed the non-tractor farm machinery industry from both demand and supply side perspectives and provides recommendations for reforms based on global practices.


Farm Mechanization:

  • It refers to the use of machinery and equipment in agricultural operations. It involves the integration of various tools and technologies to automate and streamline various farming processes, including planting, tilling, harvesting, and transporting crops.


Key highlights of the report:

  • Recommends measures and reforms for India to become a production and export hub for non-tractor farm machinery in the next 15 years.
  • The farm power availability in India is much lower compared to other countries like Korea, Japan, and the USA.


Issues with Farm Mechanization:

  • Power supply: Availability of adequate farm power is very crucial for timely farm operations for increasing production and productivity and reducing losses.
  • Uneven distribution
  • A mismatch between the needs of Indian farmers and what the farm machinery sector is producing.
  • Banks are reluctant to lend to farmers.


Steps taken by the Government to promote Farm Mechanization:

  • Sub-Mission on Agricultural Mechanization(SMAM), Drones promotion, etc.
  • Training and testing by FMTTIs of agricultural machines including tractors, power tillers, combine harvesters,
  • The institutes have provided a pool of over 2.3 lakh skilled professionals in the area of farm mechanization