Mechanization of Indian Agriculture

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ClearIAS Team February 4, 2023

Mechanization of Indian Agriculture depends on various factors such as

socioeconomic conditions, geographical conditions, crops grown, and irrigation
facilities. For the promotion of agricultural mechanization in the country, a Centrally
Sponsored Scheme ‘Sub-Mission on Agricultural Mechanization’ (SMAM) is being
implemented through the State Governments since 2014-15. Read here to learn more
about the status of agricultural mechanization in India.

Agriculture and allied sectors contribute approximately 14 percent to GDP and 49.6 percent
to the labor force. The importance of agriculture is higher in rural areas with 57 percent of the
rural population employed in the sector and 60 percent of the household dependent on it.

The agricultural sector is facing several challenges small farm holdings, which are continuing
to decrease in size, decreasing farm labor (estimated to drop to approximately 26 percent of
the labor force by 2050), and a future water scarcity crisis to name a few.

Farmers’ income has not been able to keep pace, such as to cater to increasing costs of
production including that of rising labor wages. Hence, there is a strong case for labor-
substituting farm/agriculture machinery.

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Parallelly, it is also important to note, that several activities are highly time-bound, and unless
executed as per schedule, the farmer is likely to suffer loss. Agriculture mechanization is an
appropriate answer to such challenges.

Table of Contents

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Mechanization of Indian Agriculture
Advantages of mechanization of Indian agriculture
Limitations for mechanization of Indian agriculture
Initiatives of the Government of India to Promote Farm Mechanization
Sub Mission on Agricultural Mechanization (SMAM)
Way forward

The farm mechanization levels assessed by the Indian Council of Agricultural Research
(ICAR) for major cereals, pulses, oil seeds, millets, and cash crops indicate that:

The seedbed preparation operation is highly mechanized (more than 70%) for major
crops
Harvesting and threshing operation is the least mechanized (lower than 32%) for major
crops except for rice and wheat crops.
In seedbed preparation, the mechanization level is higher in rice and wheat crops as
compared to other crops.
However, the mechanization level for sowing operations is the highest for wheat crops
(65%).
The mechanization levels in planting/transplanting operations for sugarcane and rice
crops are 20% and 30%, respectively.
In the case of harvesting and threshing, the mechanization levels in rice and wheat
crops are more than 60% and very less in cotton crops.

Farm power availability in India is estimated at 2.02 kW/hectare. Mechanization level in India
is about 40-45 percent with states such as UP, Haryana, and Punjab having very high
mechanization levels but north-eastern states having negligible mechanization.

In the dairy and livestock sector, which is largely integrated with an associated industry,
the adoption of mechanization has been more common.
In the fisheries sector, the adoption of mechanization has been even more, and it has
reaped major benefits.

The use of improved implements has the potential to increase productivity by up to 30

percent and reduce the cost of cultivation by up to 20 percent. At present, Indian farmers are
adopting farm mechanization at a faster rate in comparison to the recent past.

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According to the World Bank estimates, half of the Indian population would be urban by the
year 2050.

It is estimated that the percentage of agricultural workers in the total workforce would
drop to 25.7% by 2050 from 58.2% in 2001.

Thus, there is a need to enhance the level of farm mechanization in the country. Due to the
intensive involvement of labor in different farm operations, the cost of production of many
crops is quite high.

Advantages of mechanization of Indian agriculture

Farm mechanization or more appropriately agriculture mechanization will have a positive
impact in numerous ways-

It will let off the wage labor as also the farmer of the drudgery involved in manual
operations.
enhanced manpower productivity since skills is integral to machine-based operations.
Effective use of agriculture machinery helps to increase productivity & production of
output, undertake timely farm operations, and enable the farmers to quickly rotate
crops on the same land.
Mechanization also helps in animal husbandry, dairying, and fisheries.
Farm mechanization not only provides optimal utilization of resources e.g., land, labor,
and water but helps farmers to save valuable time and also reduces drudgery.
Mechanization results in a shift from ‘subsistence farming’ to ‘commercial agriculture.
This shift occurs mainly due to the need for more land and capital to be associated with
farmers to reap the full technological benefits.
It results in a significant modification of the social structure in rural areas. It frees the
farmers from much of the laborious, tedious, hard work on the farms. The pressure on
land decreases and the status of the farmers improves.

Limitations for mechanization of Indian agriculture

Farm mechanization and crop productivity have a direct correlation as farm mechanization
saves time and labor, reduces drudgery, cut down production costs in the long run, reduces
postharvest losses, and boosts crop output and farm income.

However, given the scale of India’s agricultural sub-sectors, mechanization is yet to

penetrate all across regions and farm types

Lack of access to farm power is one of the primary reasons for the slow uptake of farm
mechanization and hence the non-intensification of farm productivity, particularly
among small and marginal farmers.

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 One of the main limitations to deploying farming machines is the capacity of a farm to
efficiently own such equipment.
Farm equipment is capital-intensive, making it a major investment for small and
marginal farmers.
Quality of after-sale service is another concern due to the inadequacy of proper
maintenance in remote regions of rural areas.
The unwillingness of commercial banks to finance farm equipment is one of the biggest
impediments to the increase in mechanization level in India.

The basic defect of mechanization is that it will result in too many agricultural workers
becoming surplus. Millions of farmers will be thrown out of land and will have to be provided
alternative sources of employment.

Initiatives of the Government of India to Promote Farm

Mechanization
Agricultural mechanization is crucial in the agriculture sector as it contributes towards
improving the efficiency and effectiveness of the inputs used in crop production thereby also
increasing the productivity of crops. This also reduces the drudgery associated with various
farm operations.

Sub Mission on Agricultural Mechanization (SMAM)

To boost farm mechanization in the country, a special dedicated Centrally Sponsored

scheme ‘Sub Mission on Agricultural Mechanization (SMAM)’ has been introduced by the
Government of India in 2014-15.

The scheme aims at ‘reaching the unreached’ by making farm machines accessible
and affordable for small and marginal farmers (SMFs) through the establishment of
Custom Hiring Centers (CHCs), creating Hubs for hi-tech & high-value farm equipment,
and Farm Machinery Banks.
Distribution of various subsidized agricultural equipment and machines to the individual
farmer is also one of the activities under the scheme.
Purchasing farm machines for SMFs is not financially feasible therefore custom hiring
institutions provide hiring options for machines to SMFs.
Creating awareness among stakeholders through the demonstration of machine
operations and skill development of farmers and youth and others are also components
of SMAM.
The performance testing and certification of machines at designated testing centers
located all over the country are ensuring farm machinery qualitatively, effectively, and
efficiently.

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Under this scheme, financial assistance at 40% to 50% of the cost of machines depending
on the categories of farmers, is provided for the purchase of agricultural machines.

Financial assistance at 40% of the project cost is also provided to rural youth & farmers as
an entrepreneur, Cooperative Societies of Farmers, Registered Farmers Societies, Farmer
Producer Organizations (FPOs), and Panchayats for the establishment of Custom Hiring
Centres (CHCs), and Hi-tech hubs of high-value agricultural machine.

Way forward
Better mechanization of Indian Agriculture requires more establishment of custom hiring
centers and the development of an institutional framework for these centers are essential
steps that need to be taken.

Make In India can be used to support local manufacturing of farm implements currently being
imported.

Corporate Social Responsibility funds can be used for the capacity-building initiative in the
farm equipment space as well as promoting a sustainable agricultural ecosystem.

It is pertinent to devise a framework that would strengthen the credit policy for farm
machinery in India. Credit guarantee fund currently facilitates loans for micro, small, and
medium enterprises (MSMEs). Similar models should be devised for the farm machinery
sector as well.

Also read: Agriculture export policy

-Article written by Swathi Satish

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