Indian Agricultural Equipment Market: Segment Analysis

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Indian Farm Equipments Market Report -------------------------------2012

View Report Details Executive Summary In India, farm mechanization has played a critical role in improving agricultural production as well as productivity by enabling proper and efficient use of inputs. Demand for farm equipments such as power tillers, tractors, combine harvesters, rice transplanters etc has been rising over the past few years, with the increase in income level of farmers. Additionally, with acute shortage of labor resources and continued subsidy scheme by government to encourage farmers to buy farm equipments has further increased farm equipments demand. As compared to other Asian countries such as China, Thailand, Korea; use of power in agriculture in India is still underpenetrated. Presently, India is the largest manufacturer of tractors in the world, accounting for about one-third of the global production. Power tillers are becoming popular in lowland flooded rice fields and hilly terrains. Northern States such as Punjab, Haryana, and Uttar Pradesh achieved a faster growth in mechanization due to growing awareness among farmers. Pace of mechanization in North-Eastern States is slow due to constraints such as hilly topography, socio-economic conditions and high cost of transport. With continued shrinkage in average farm size, custom hiring of farm machinery is being increasingly practiced. Mahindra & Mahindra is the market leader in Indian tractor market whereas VST Tillers Tractor Ltd is the leader in power tiller market. Other major farm equipments manufacturers include Escorts Group, TAFE, John Deere, Greaves Cotton and KAMCO. The rapid use of mechanization by Indian farmers has prompted many Chinese and Japanese farm equipment makers to enter the Indian market. These companies generally form joint ventures with Indian firms and manufacture equipments at a lesser price. The current report covers the overview, market size and segmentation of farm equipments market in India. Product prices of various farm machineries, Government subsidies, standard certification system, and current details of major companies are also discussed in detail. Data on import and export of farm machinery by country and by product category has also been provided.

Factors Driving Farm Equipments Market Agricultural Machinery Market in India

 The agriculture sector in India has undergone significant structural changes….……….decrease in share of GDP from …………………in 1990-91 to …………………...……………………………………………… in 2011-12 (as per advance estimate released by CSO on 07.02.2012) indicating a shift from the traditional agrarian economy towards a service dominated one.  With acute shortage of labor resources and continued subsidy scheme by government ………………………….........................to encourage farmers to buy ……………………………………………Farm Equipment in order to improve productivity …………………………………………… ………..has further increased the Farm Equipments demand. The overall Indian agricultural machinery market was valued at US$............................................................. billion in 2010.

KW/Hectare

Use of Power in Agriculture in KW/Hectare

1971-72 1981-82 1991-92 2001-02 2005-06 2009-10

 The Department of Agriculture and Cooperation, Ministry of Agriculture, has been providing financial assistance……………………. …………………………..on agricultural equipment and implements to all categories of farmers under its various …………………………………….Central Sector Schemes.

Farm equipments use in agriculture Various Farm Machineries Market Size in India

Farm Machinery Current Market Prices

Units in '000

Type of Assistance

FY08

FY09

FY10

Tractors

Power Tillers

Power Sprayers

Brush Cutters

FY11

Combine Harvesters

Farm Machinery Current Market Prices

and ΧΧ% of the cost whichever

Tractor upto 40 HP

INR is less

Power Tiller

INR or ΧΧ% of the cost whichever is less for 8 BHP and above. INR or 40% of the cost whichever is less for less than 8 BHP

Self Propelled Reaper, paddy transplanter

INR less