Farm Equipment Market In India

Abstract
The Indian agricultural machinery market was valued at INR 575 Bn in 2017, and is expected to expand
at a compound annual growth rate (CAGR) of ~6.40% from 2018 to 2023. Frequent innovations in the
designs and functions of agricultural equipment is the major driving force of the industry. After the
implementation of the goods and services tax (GST), agricultural equipment like tractors and drip
irrigators were put under the 12% tax slab, and agricultural implements, which includes plow, threshers,
axes, and powrahs, were put under the 28% tax slab. The imposition of these taxes has put extra
pressure on Indian farmers, thus affecting their productivity.
Introduction
The Indian farming sector is reliant to a great extent on agricultural equipment, since it helps in
increasing productivity, at reduced costs, with lower human and animal effort. Some of the common
agricultural machinery used in India include cultivators, tractors, and planters mowing tools. The central
government of India has proposed several initiatives focusing on 'on-farm mechanizations', which are
aiding the penetration of advanced machinery in the agricultural sector of the country.
i. The Agriculture Machinery Market in India
Growing incomes of Indian farmers has helped to boost the demand for farm implements. With this, the
unavailability of skilful labours for agricultural activities has also added to the growing demand for
agricultural equipment. Moreover, many attractive funding plans offered by the governments have also
encouraged Indian farmers to buy the latest agricultural 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 plant.
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 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.
ii.
Top 15 Tractor Manufacturing Companies in India
Tractors in India is the major contributor to agriculture and the country is world’s largest producer and
market for tractors. Eicher, Escorts,Captain Tractors, Mitsubishi Tractor, Mahindra Tractors, New
Holland Tractors, Mahindra Gujrat Tractor, and John Deere tractors.
Mahindra Tractors

Mahindra Tractors is the largest manufacturer of tractor in India and also highest-selling tractor brand
by volume. Mahindra Tractors operates in ten countries and has growing market in Australia and China.
Mahindra & Mahindra is the largest tractor producers in the world and host one of the largest consumer
base is in India as well producer of trucks and school buses in India.
Gujarat Tractors
Mahindra Gujarat Tractors Limited is the oldest running tractor unit in India, sold under Sakthimaan and
Trakstar brand names. The company renamed as Gromax Agri Equipment Limited and continue to sold
as Trakstar and Hindustan 60.
TAFE Tractors
Tractors and Farm Equipment Limited is a Chennai based tractor manufacturer and the second largest
tractor manufacture rin India by volumes. TAFE Tractors has a distribution network and new facility in
Turkey and China to manufactures a range of tractors.
Sonalika Tractors
Sonalika Tractors by Sonalika Group is active mainly in the automobile sector, involved in manufacturing
and exporting of tractors.
Eicher Tractors
Eicher tractors set up the Eicher tractor in India In 1959 along with Goodearth Company. The German
tractor company sold to TAFE which still produces Eicher tractors and the company product Eicher
trucks in India.

Escorts Tractors
Escorts Group operates in the sectors of Agri machinery and manufactures tractors under the brand
names of Farmtrac. Escorts Agri Machinery is an Indian engineering company, Headquartered in
Faridabad.
John Deere Tractors
John Deere is an American corporation that manufactures Agricultural equipment, Forestry equipment
and also Construction equipment. John Deere tractors have the comfort and convenience features
Force Tractors
Balwan Tractors are produce by Force Motors and the company is India’s largest van maker. The
company is very much famous for vehicle brands like the Tempo, Matador, Minidor, Trax, Traveller and
extreme off roader vehicle Force Gurkha.
Swaraj Tractors
Swaraj Tractors was known as Punjab Tractors Limited and now the Swaraj division owned by Mahindra
& Mahindra Ltd. Punjab Tractors named as Swaraj, The first Indian company to manufacture agricultural
tractors in India.
Standard Tractors
Standard Tractors based in Barnala of Punjab and started manufacturing of Standard Tractors in 1990.
Captain Tractors

Captain Tractors are also known as Mini Tractors or Chotta Tractor with various attachments and
workable products.
New Holland Tractors
New Holland is a global agricultural machinery company and products include tractors and combine
harvesters.
Indo Farm Tractors
Indo Farm Equipment Limited is located in Himachal Pradesh and into the manufacturing of world-class
tractors in India. The company first started tractors operations in the year 2000 and offers best in the
class technology and innovation.
Preet Tractors
Preet Tractors from Preet Agro Industries that also manufactures wide range of combine harvesters. The
company manufactures agricultural tractors ranging from 35 HP to 90 HP agricultural Tractors with
Wheel Drive and Air Conditioner Cabin.
Kubota Tractor
Agricultural tractors and machinery from Kubota are getting very popular in India, The Japanese tractor
company produces a wide variety of outstanding agricultural products and leading brand of tractor in
India.

Current manufacturers of tractors in India are ACE Tractors, Agri-King Tractors, Angad Tractors from SAS
Motors, Crossword Agro Industries, Farmer Tractors, Mars Group,SAME Deutz-Fahr and VST Tillers.
iii.
6 Machines that Make Modern Farming More Productive
Farming is perhaps one of the world's oldest and most necessary trades, and up until recently, it has
continued on with the same tools. Modern engineering along with tractors and new machinery has
shifted the farming industry to one of efficiency and mass production. Farming is no longer a small scale
production, but rather one that takes place with massive machines over thousands of hectares. This
efficiency boost means that the world has access to any food it wants at any time. Let's take a look at 6
modern machines that dramatically increased the efficiency and production of farming operations
across the globe.
Automatic InRow Weeder
As farmers know, weeding is an essential part of making sure you maintain a good crop. Letting your
fields get overgrown can allow weeds and invasive species to choke out your cash crop and leave the
farmer with pennies. Pesticides and weedicides are common, but many take issue with the possibly
harmful chemicals hidden within. As a result, the Robocrop InRow Weeder was designed to quickly and
effectively tear up weeds without worrying about hurting the original crops.
Olive Harvester
If you didn't know, olives grow on trees, which also makes them incredibly hard to harvest. Up until
recently, the small oily fruit was picked by hand in a painstaking process by many workers. Now, farmers

use an olive harvesting machine which shakes the tree, releasing the olives, and collecting them in one
centralized location.
Automatic Cow Milking Machine
Cows are the most abundantly used livestock on the planet, from meat to milk, cow products help make
the world go round. For large-scale milking operations, it simply isn't feasible to have hundreds of
workers milking cows from morning until night. Even still, having workers attach automatic pumps to the
utters is still in need of efficiency improvements. For this reason, this automated cow milking machine
was invented which takes humans completely out of the process.
Small-scale Potato Harvester
Potatoes are root vegetables, which means that harvesting them requires a lot of digging. The machine
above tills the dirt around the potatoes and brings them up out of the ground. Even though the video
depicts a small-scale machine, the same technology is used in tractor-towed rigs to harvest potatoes at
an even greater scale.
Robotic Lettuce Harvester
Whether you knew it or not, lettuce is a very hard leafy green to harvest, and it often required hundreds
of workers spending their days bending over and standing up. This repetitive motion opened up the
industry to a wide array of back problems, and the farmers saw that something needed to be done. The
above video gives an inside look into the lettuce harvesting industry and how, in this case, automation is
actually creating better jobs.
Carrot Harvester and Separator

As we mentioned with potatoes, root vegetables are notoriously hard to harvest, and carrots are no
different. The tow-behind carrot harvesting machine above is perhaps the most mesmerizing of
machines we have listed here, and its scale is just astounding. Think about the same process being done
by hundreds of workers digging up carrots. Only then can the increase in efficiency in this process truly
be grasped.
These machines are only a touch into the variety of high-efficiency farming machines. The biggest fear
with this scale of automation is a loss in jobs, creating an economy that is poised on skilled labor. While
these innovations are amazing, the world will have to face the problem of skyrocketing unemployment
in the future as automation like seen in the farming industry hits the rest of the workforce.
iv.
Agricultural Machinery – Changing Trends in India
India has welcomed and made the best out of the advancements in agriculture over past few decades.
While Green Revolution of the 1970s is one of the biggest milestones in this regard, farm mechanization
is the talk of the present. The latest trends suggest that considerable numbers of farmers have started
opting for machines, beyond tractors, thanks to a number of favourable aspects. The following sections
share some of the exciting trends about the growing acceptance of Agricultural Machinery in India.
Farm Power Sources – From Animate to Technology-based
The contribution of animate sources (farm workers and draught animals) towards farm power
dramatically reduced from about 92% in the 1960s to about 9.5% in 2014-15. At the same time, the
contribution of mechanical and electrical sources increased significantly from about 8% to about 90.5%
over the same period. Another interesting trend is about the degree of farm mechanization which
increased slowly from 0.48 KW/ha to 1.84 KW/ha between mid-1970s and 2013-14 but gained

momentum to reach 2.02 KW/ha by 2016-17 (Source: Press Information Bureau). Each of these trends
indicates the growing approval of farm machines.
Upward Demand of Agricultural Machinery
The number of tractors sold between 2010 and 2014 increased from 4,02,586 to 6,34,151 while the
number of power tillers increased from 38,794 to 56,000 over the same period (Source: EIMA
Agrimach). Also, the contribution of tractors towards farm power increased from 118.2 million KW in
2011-12 to 136.7 million KW in 2013-14 (Source: ICFA).
It is also notable that the farm mechanization market value that was INR 320 billion in 2015-16 is
estimated to reach INR 400 billion by 2019-20, growing at the CAGR of 5.74% (Source: ICFA). The urge
for increased productivity, decline in farm labour availability and continuous migration from rural to
urban areas are some of the factors behind these trends.
Innovations in Women-Friendly Machines
About 60% of women in India are involved in agricultural activities. The statistics are high as compared
to 40% of Latin America, 44% of Thailand and even 42% of the world. As a result, there is a growing
trend of designing women-friendly Agricultural Machinery in India. Some of these machines include the
hand-operated maize dehusker-cum-sheller, finger guard for flower plucking, paddle-operated paddy
thresher and strippers for sugarcane and groundnut (Source: UN-SCAM).
Increasing Initiatives from Government
The Ministry of Agriculture and Farmers Welfare launched the Sub-mission on Agricultural
Mechanization (SMAM) in 2014-15 to promote agricultural machines among farmers with small and
marginal land holdings. The mission also extended its reach to the areas where mechanization is still at
very low level.

Promotion of farm machinery is one of the many aims of the National Food Security Mission. One of its
achievements during 2015-16 was the distribution of huge numbers of rotavators,drill-cum-planters,
laser land levellers, power-operated spray pumps, tractor-operated sprayers and many other machines
in the states of Punjab and Haryana (Source: Agricoop).
Other similar programs include RKVY and NHM. Setting up of more numbers of research, development
and testing units is going to enhance the popularity of agricultural machinery in India. In few years from
now, we would have much more exciting trends about farm mechanization in hand.
Conclusion
The Indian government's commitment towards rural development through agro-mechanization is likely
to boost the agricultural machinery market in India. Also, government subsidies and low import duties
on agricultural equipment have made such heavy machinery affordable for farmers, thus increasing
sales volumes.
Large scale migration from rural to urban areas has led to a shortage of labour in the farming industry.
Therefore, to fulfil the rising demand for agricultural products by the growing Indian population, farmers
are forced to use automatic machinery that ensure high productivity, in less time, with limited human
effort.
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