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Farm Mechanization

Farm Mechanization

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Farm Mechanization

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  1. Farm Mechanization Mechanization & Technology Division, Department of Agriculture & Cooperation, Ministry of Agriculture, KrishiBhawan, New Delhi

  2. Farm Mechanization: Everywhere Inter Cultivation Tillage & seedbed Preparation Sowing/ Planting Fertiliser Application Irrigation Harvesting Post Harvesting Plant Protection Mechanisation is clearly the answer to key performance parameter at every stage of cropping cycle Mechanized Solutions for whole chain

  3. INDIAN AGRICULTURE STRENGTH LARGE > 10 ha (1.2 mil) Medium 4-10 ha (6.3 mil) • Highest Arable Land - 47% of total land against Avg. 11 % in the world • Round the Year Cultivation - 20 Agro-climatic regions and 46 Soil types suited for round the year cultivation • Ranks first in production of Pulses, Tea, Jute and allied fibers • Second largest producer of Wheat, Rice, Groundnut, Fruits and Vegetables, Sugarcane & Third largest producer of Mustard, Potatoes, Cotton lint, etc. • 102.8 Million Farmers, over 7.5% owns > 4 ha. Avg farm land size <2 ha, Semi medium 2-4 ha (13.1 mil) Small 1 -2 ha ( 20.9 mil) Marginal < 1 ha (61.3 mil) Average Land Holding and Number of Farmers

  4. Farm Mechanization: Key Driver FICCI-YES Bank Report, 2009 Productivity has positive correlation with Mechanization level

  5. Farm Mechanization : Key Driver for Productivity Increase in Production Objective Productivity increase [Yield/ha] Enhancing Cropping intensity Means Farm Mechanisation Key Driver

  6. Need For Accelerated Farm Mechanization • Essential driver for sustaining agricultural growth • Positive correlation between farm power availability and agricultural productivity • Addressing scarcity of agricultural labour • Climate Change Mitigation • Notwithstanding advantages: • Growth of farm mechanization (farm power/ha) is poor in last decade ; and • Level of mechanization is significantly low in many potential regions ( Eastern, North Eastern)

  7. The Need • To bridge existing policy gaps and to envisages an inclusive growth of farm mechanization; • One integrated Mission aiming an accelerated but inclusive growth of agricultural mechanization in India; • Sub Mission on Agricultural Mechanization (SMAM)

  8. Focus Areas • Small and Marginal Farmers; • Reaching the unreached: Lowly mechanized villages; • Custom Hiring Services: Entrepreneurship; • Creating ownership • Capacity/Awareness building

  9. Mission Objectives • Increasing the reach of farm mechanization to small and marginal farmers and to the regions where availability of farm power is low; • Offsetting adverse ‘economies of scale’ and ‘higher cost of ownership’ of high value farm equipment by promoting ‘Custom Hiring Centre’ for agricultural machinery; • Passing on the benefit of hi-tech, high value and hi-productive agricultural machinery to farmers through creating hubs for such farm equipment.

  10. Mission Objectives • Promoting farm mechanization by creating awareness among stakeholders through demonstration and capacity building activities; • Ensuring quality control of newly developed agricultural machinery through performance evaluation of newly developed agricultural machinery and equipment and certifying them at designated testing centers located all over the country.

  11. Proposals on Agricultural Mechanization during 12th Five Year Plan

  12. Component No.1:Promotion and Strengthening of Agricultural Mechanisation through Training, Testing and Demonstration

  13. Component No.2: Post Harvest Technology & Management

  14. Component No.3:Financial assistance or Procurement Subsidy for selected Agriculture Machinery and Equipments

  15. Individual Ownership OR. Custom Hiring Key Question is How to cater marginal and small farmers who aggregate to > 80% of cultivators

  16. Component No.4

  17. Component No.4(a):Procurement subsidy for establishment of Custom Hiring Centers

  18. Financial support to Private Entrepreneurs for setting up Custom hiring Centers through creation of Credit Guarantee Fund. In the beginning ,Government may be contribute 100% share of Corpus., Later banks ,manufacturers may be join increase the corpus. Ministry of Agriculture Government of India Credit Guarantee Fund May be parked with NABARD/ NCDC Implementing Agency May be NABOCNS/ NAFED/NCDC Entrepreneurs

  19. Financial support to Private Entrepreneurs for setting up Custom hiring Centers through creation of Venture Capital Fund Ministry of Agriculture Government of India In the beginning ,Government may be contribute 100% share of Corpus., Later banks ,manufacturers may be join increase the corpus. Venture Capital Fund May be parked with NABARD/ NCDC Implementing Agency May be NABOCNS/ NAFED/NCDC Entrepreneurs

  20. Operationalisation of VCF/CGF The Implementing agency(IA): • To act as sole ,single window interface between fund holder and entrepreneur • To provide end –to –end solution to Entrepreneurs starting from Project Appraisal sanctioning of Loan, assets creation ,technical support etc. • To monitor the performance of Custom Hiring Centres and appraisal potential strength /weaknesses. • To create awareness about the scheme and market it among potential users through road show ,print advertisement ,electronic media etc. IA will charge service cum consultancy fees at a stipulated rate both from fund holder as well as from Entrepreneurs.

  21. Operationalisation of VCF/CGF The Implementing agency(IA): • To act as sole ,single window interface between fund holder and entrepreneur • To provide end –to –end solution to Entrepreneurs starting from Project Appraisal sanctioning of Loan, assets creation ,technical support etc. • To monitor the performance of Custom Hiring Centres and appraisal potential strength /weaknesses. • To create awareness about the scheme and market it among potential users through road show ,print advertisement ,electronic media etc. IA will charge service cum consultancy fees at a stipulated rate both from fund holder as well as from Entrepreneurs.

  22. Component No.5:Procurement subsidy for establishment of Hi Tech Hub

  23. Component No.6:Enhancing Farm Productivity at Village Level by introducing appropriate farm mechanization in selected villages.

  24. Component 7: Creating ownership of appropriate farm equipments among small and marginal farmers in the eastern /north eastern regions

  25. THANKING YOU