Farm machinery use and the agricultural machinery industries in India: Status, evolution, implications, and lessons learned

Over the last several decades, India has seen a continuous spread of tractor use as well as growth in its domestic tractor manufacturing industry, despite relatively slow wage growth and a slow decline in the employment share of the agricultural sector. By now, arguably as much as 90 percent of the...

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Main Authors: Bhattarai, Madhusudan, Singh, Gajendra, Takeshima, Hiroyuki, Shekhawat, Ravindra S.
Format: Book Chapter
Language:Inglés
Published: International Food Policy Research Institute 2020
Subjects:
Online Access:https://hdl.handle.net/10568/142791
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author Bhattarai, Madhusudan
Singh, Gajendra
Takeshima, Hiroyuki
Shekhawat, Ravindra S.
author_browse Bhattarai, Madhusudan
Shekhawat, Ravindra S.
Singh, Gajendra
Takeshima, Hiroyuki
author_facet Bhattarai, Madhusudan
Singh, Gajendra
Takeshima, Hiroyuki
Shekhawat, Ravindra S.
author_sort Bhattarai, Madhusudan
collection Repository of Agricultural Research Outputs (CGSpace)
description Over the last several decades, India has seen a continuous spread of tractor use as well as growth in its domestic tractor manufacturing industry, despite relatively slow wage growth and a slow decline in the employment share of the agricultural sector. By now, arguably as much as 90 percent of the country’s farm area may be prepared by tractors. India is now the largest tractor market in the world, purchasing more than 90 percent of the 660,000 tractors it produces per year. The annual value of tractors sold in India is more than US$5 billion per year. This study reviews the evolution of agricultural mechanization, particularly tractors, in India. In doing so, it provides some rough indicators of the extent of mechanization (particularly the spread of tractor use) at different historical phases, emphasizing that India’s experiences up to 1990 are as important as the lessons since then. Substantial infrastructure endowments (in terms of roads, for example), which were already high in the 1960s, and investments into rural electrification, as well as knowledge accumulation through the importation of a large number of tractors early on, are likely to have helped the growth of domestic tractor manufacturing. Diverse custom hiring services for tractors and combine harvesters have emerged to serve areas that are profitable, with relatively little direct support from the government. The private sector has also stepped up to provide facilitating services to connect service providers and farmers. Empirical analyses of the impact of tractor ownership and tractor/combine harvester use confirms many hypotheses about the farm-level impact of mechanization in India. Despite the typically small landholding in India, tractor ownership is led by the motive to expand farm size. Tractors are more bullock saving than labor saving, whereas combine harvesters are more strongly labor saving. Combine harvesters are more yield enhancing than tractors, but land preparation by tractors may indirectly enhance yields through the increased use of chemical fertilizer.
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spelling CGSpace1427912025-11-06T03:57:45Z Farm machinery use and the agricultural machinery industries in India: Status, evolution, implications, and lessons learned Bhattarai, Madhusudan Singh, Gajendra Takeshima, Hiroyuki Shekhawat, Ravindra S. machinery industry tractors supply balance policies equipment technology farmers households demand labour agriculture harvesters harvesting agricultural mechanization farm size governance Over the last several decades, India has seen a continuous spread of tractor use as well as growth in its domestic tractor manufacturing industry, despite relatively slow wage growth and a slow decline in the employment share of the agricultural sector. By now, arguably as much as 90 percent of the country’s farm area may be prepared by tractors. India is now the largest tractor market in the world, purchasing more than 90 percent of the 660,000 tractors it produces per year. The annual value of tractors sold in India is more than US$5 billion per year. This study reviews the evolution of agricultural mechanization, particularly tractors, in India. In doing so, it provides some rough indicators of the extent of mechanization (particularly the spread of tractor use) at different historical phases, emphasizing that India’s experiences up to 1990 are as important as the lessons since then. Substantial infrastructure endowments (in terms of roads, for example), which were already high in the 1960s, and investments into rural electrification, as well as knowledge accumulation through the importation of a large number of tractors early on, are likely to have helped the growth of domestic tractor manufacturing. Diverse custom hiring services for tractors and combine harvesters have emerged to serve areas that are profitable, with relatively little direct support from the government. The private sector has also stepped up to provide facilitating services to connect service providers and farmers. Empirical analyses of the impact of tractor ownership and tractor/combine harvester use confirms many hypotheses about the farm-level impact of mechanization in India. Despite the typically small landholding in India, tractor ownership is led by the motive to expand farm size. Tractors are more bullock saving than labor saving, whereas combine harvesters are more strongly labor saving. Combine harvesters are more yield enhancing than tractors, but land preparation by tractors may indirectly enhance yields through the increased use of chemical fertilizer. 2020-11-01 2024-05-22T12:11:04Z 2024-05-22T12:11:04Z Book Chapter https://hdl.handle.net/10568/142791 en https://doi.org/10.2499/9780896293809 https://doi.org/10.2499/9780896293823 Open Access application/pdf International Food Policy Research Institute Bhattarai, Madhusudan; Singh, Gajendra; Takeshima, Hiroyuki; and Shekhawat, Ravindra S. 2020. Evolution of agricultural mechanization in Viet Nam. In An evolving paradigm of agricultural mechanization development: How much can Africa learn from Asia?, eds. Xinshen Diao, Hiroyuki Takeshima, and Xiaobo Zhang. Part Two: Early-Adopter Asian Countries, Chapter 3, Pp. 97-138. Washington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/9780896293809_03.
spellingShingle machinery industry
tractors
supply balance
policies
equipment
technology
farmers
households
demand
labour
agriculture
harvesters
harvesting
agricultural mechanization
farm size
governance
Bhattarai, Madhusudan
Singh, Gajendra
Takeshima, Hiroyuki
Shekhawat, Ravindra S.
Farm machinery use and the agricultural machinery industries in India: Status, evolution, implications, and lessons learned
title Farm machinery use and the agricultural machinery industries in India: Status, evolution, implications, and lessons learned
title_full Farm machinery use and the agricultural machinery industries in India: Status, evolution, implications, and lessons learned
title_fullStr Farm machinery use and the agricultural machinery industries in India: Status, evolution, implications, and lessons learned
title_full_unstemmed Farm machinery use and the agricultural machinery industries in India: Status, evolution, implications, and lessons learned
title_short Farm machinery use and the agricultural machinery industries in India: Status, evolution, implications, and lessons learned
title_sort farm machinery use and the agricultural machinery industries in india status evolution implications and lessons learned
topic machinery industry
tractors
supply balance
policies
equipment
technology
farmers
households
demand
labour
agriculture
harvesters
harvesting
agricultural mechanization
farm size
governance
url https://hdl.handle.net/10568/142791
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AT takeshimahiroyuki farmmachineryuseandtheagriculturalmachineryindustriesinindiastatusevolutionimplicationsandlessonslearned
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