Growing incomes of Indian farmers has helped to boost the demand for farm implements. With this, the unavailability of skillful labours for farming activities has also added to the growing demand for agricultural equipment. Moreover, various attractive funding plans offered by the governments have also encouraged Indian farmers to buy the latest farm machinery.
A Substitute For Human Labour – One of the major benefits for farmers having agriculture implements is that they help farmers saving manual labour cost. Though India is the second-largest countries using manpower, all sectors of our economy are affected by the shortage of labour. This influence is presently being more felt in the agricultural industry when comparing to other sectors.
Labour contributes a significant part in agricultural production; though, with increasing urbanization and improving opportunities, many people from rural areas are migrating to urban areas of the country, creating a major labour demand and supply imbalance. This migration is helping a lot of other proxy farmers to take care of multiple lands. As an outcome, implements are estimated to play a significant role in agriculture efficiency in the upcoming years.
High efficiency and Productivity: With the use of agricultural implements production, efficiency and per man productivity has also increased. Farm mechanization has increased the harvesting of land areas, resulting in a lower cost of labour, better use of land and growing farm income.
Cost Savings: Although a high initial capital investment is needed for buying agricultural implements. Yet after a long period, they prove to be a more cost-effective option when compared to manual labour or work animals.
Perfections in Agriculture Techniques: The use of agricultural implements is beneficial for irrigation, land renovation and to prevent soil erosion. For instance, ploughing by a tractor recovers more acreage, therefore extending the area cultivation with smoothening of hillocks, filling depressions and gullies and eliminating deeps-rooted wild plants.
Supported by Government: A different key driver of the agriculture machinery industry is the fact that it denotes a significant part of the government. Agriculture still occupies the main position for livelihood for half of the total population of the country and, as a consequence, it also represents an important vote bank for a government that wants to stay in the power. This is why the government of India also provides subsidies to farmers on water, agricultural machinery, hybrid seeds, electricity, and agrochemicals, etc.
Large Agriculture Economy: Being the second-largest populated country, India accounts for approximately 18% of the entire world population. Catalyzed by an increasing population, the necessity for different types of agricultural products is also increasing significantly. This increase has encouraged the farmers to use enhanced agriculture technologies and increase the levels of mechanization in their farming practices ensuing in the growing demand of agricultural implements and approaches in sectors such as dairy, livestock, farming, fisheries, etc. Furthermore, an additional half of the population of India depends on agricultural foods that are further supporting the growth of the agriculture market.
Growth in custom hiring of the farm implements: The extraordinary capital cost of agriculture implements may often restrain lots of small-scale farmers to purchase them. Furthermore, small scale farmers do not find it a cost-effective deal to buy and invest in their own agricultural implements. Which is helping in the development of a large market for custom hiring of implements, where farm implements can be rented out by farmers for a specific time and cost.