India's farm equipment market to grow to $18 bn by 2025: FICCI-PwC report
Rural Marketing , Dec 5, 2019
India’s farm equipment market likely to grow to US$ 18 billion by 2025 from USD 13 billion. Farm mechanisation in India is in the initial stages, with the mechanisation level ranging from 40–45 percent, which is very low compared to that in developed economies, where mechanisation has reached beyond 90 percent, a FICCI-PwC report ‘Farm mechanization: Ensuring a sustainable rise in farm productivity and income’ released today at EIMA AGRIMACH in New Delhi, has said.
According to the report, India’s farm equipment market is 7 percent of the global market, with more than 80 percent of the value contribution coming from tractors. The adoption rates of farm equipment have increased as indicated by the sale of tractors and the rise in farm power availability (FPA) in the recent past.
Domestic sales of tractors have increased from 3 lakh units in FY09 to 7.8 lakh units in FY19, registering a phenomenal compound annual growth (CAGR) of 10 percent. India is also one of the largest manufacturers of equipment such as tractors, harvesters and tillers, the report has said.
With rise in pollution and huge nutritional losses through crop residue burning, mechanised solutions like the super straw management system (SMS)5 and promoting custom hiring centres around stubble management are other important drivers fuelling sectoral growth.
Technology integration by farm mechanisation start-ups, especially based on the farming as a service (FAAS) model, is gaining significant momentum these days, the report has analysed.
Government to promote use of additional farm machinery to achieve diverse utilization of mechanization - MoS Agriculture & Farmers' Welfare