Agricultural Equipment Market in India

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The contribution of agriculture and allied sectors to India’s GDP stood at around 13.7% in 2012-13 (at 2004-05 prices) and the sector provides employment to around 58% of the country’s population. Agricultural production was estimated at 264.38 million tonnes in 2013-14 (includes kharif 2013 and rabi 2013-14 crops) and is expected increase further. Albeit still in an early stage, farm mechanization has played a notable role in the increase in agricultural production in the country.

 Agriculture: Key stages and corresponding equipment used (select equipment)

Agriculture Key stages and corresponding equipment

Manufacturing of agricultural equipment has the presence of around 250 medium and large scale enterprises, 2,500 small scale and 18,000 tiny units in India

 Market for agricultural equipment was estimated at between INR 500 to 525 billion in 2013-14, witnessing a growth of around 5% annually.  Farm mechanization has made significant inroads in northern states like Punjab, Haryana and Uttar Pradesh.

 Good monsoon, minimum support price for the farmers, rural prosperity and availability of power are the key parameters that impact the sale of farm mechanisation equipment.

Power availability for farming practice is a crucial indicator for the level of agricultural mechanisation and the demand for agricultural machineries. Power availability has increased from 0.36 kW per hectare in 1971 to 1.68 kW per hectare at the present time.

 Tractors account for a major share in the farm mechanization market in India, followed by thresher.  Sale of tractors was around 634,000 units in 2013-14, registering a growth rate of 20% year-on-year; India is the leading tractor market globally followed by China and USA.  Around 23% of the total cultivable area in India uses tractors for tillage purpose.

 The market for power tillers and rotavators stood at around 50,000 – 70,000 units during 2013-14.  While power tillers are in demand for paddy cultivation of small land holdings then rotavators, over the recent years, are replacing conventional tillage method using tractor.

 Most of the Indian farm equipment are tractor driven and the country is one among the leading tractor market.  Mahindra & Mahindra, the largest tractor maker globally in volume, accounts for around 41% of the total Indian tractor market in 2013-14.

Agricultural Equipment Table2