In the midst of a pandemic, the country’s economic situation went through a lot of stress and uncertainty. During this stressful period, the valuation of the Indian agriculture equipment market hit 4.29 billion USD (in 2018). The market experts are predicting an average growth for the next five years as well.
The global agriculture equipment market, especially the irrigation sector has grown significantly.
Agricultural mechanization is improving every year, and significant portions of farmers in India have begun to use more mechanical equipment to boost farming activity. Mechanical tools are used for operations like irrigation, sowing, threshing, tillage, plant protection, etc.
The farming sector is gradually increasing the usage of machines in their farming activities, and the farming equipment market is expected to grow in the coming years at a significant rate.
There are some factors/drivers of this market, and they have always contributed to the growth/changes in the Indian agriculture equipment market. The article will list the significant factors that influence the equipment market of the country.
The farming sector is gradually increasing the usage of machines in their farming activities, and the farming equipment market is expected to grow in the coming years at a significant rate. This is especially true with new advancements and safety features ranging from John Deere tractor canopies to even the use of drones installing a John Deere canopy.
Factors influencing the farm equipment market:
1. Ease of financing
There are a lot of microfinance institutions and rural banks across the country and every year, the number of these banks is increasing. The State and Central Govt. are keen on setting up these financial institutions at every nook and corner of the country for easy and fast availability of finance for farmers everywhere. Having a bank near the farming area is beneficial for the farming community regarding the financial needs.
2. Labour shortage
This is the reason why more farmers are opting for more mechanization in this industry. The large-scale movement of people from rural to urban places has created a shortage of labor force in agricultural activities. The migration of people from rural to urban areas is expected to grow in the coming years, and it will only increase the need for mechanization in the industry.
3. Increasing incomes
The country’s economic status is seeing many ups and downs, but there is a steady growth in rural households’ agricultural productivity and income levels. The last few years have seen improvement in the income levels of rural workers, and so does their spending on complex equipment. Farmers are now opting to buy machines that will reduce hard labor and time-consuming activities.
4. Government incentives
The State and Central Govt. always provide incentives in low import duty and subsidies on agricultural/farm machinery. The introduction of easy and uncomplicated financing plans by the government also drives the farm equipment market.
5. Huge untapped market
The agricultural sector has seen a huge growth in recent times, but the demand for tractors and related equipment remains lower than predicted. There is still room for more growth and business in this sector, and it’s predicted to grow further in the coming years. This untapped market is a positive sign for the farming equipment business.
6. Introduction of contract farming
With the rise of contract farming, it is expected to boost this market (farm equipment) in India. This type of farming enables farmers to benefit from technology, financing, and training with the contractor’s support.
This option will see an increase in mechanization in the farming sector. This method of business/farming has brought a positive impact on the agriculture sector. These are the major factors that can change the current scenario of the Indian agriculture equipment market. And these factors will continue to affect the demand and supply of farming equipment in the country.
