Custom hiring services of farm machinery in India

Custom hiring services of farm machinery in India

1. Welcome 1

2. 2 Seminar-1 On Custom Hiring Services of Farm Machinery in India

3. Flow of presentation Introduction about farm mechanization Indian scenario Government schemes Introduction about Custom Hiring Custom hiring situation in India Custom Hiring centers Need for custom hiring Custom Hiring Centers in Karnataka Research studies Conclusion 3

4. 4 INTRODUCTION

5. 5 Meaning: Farm Mechanization is the process of developing machines and substituting this machine power for human and animal power in agriculture and allied production practices . Definition: According to FAO(2002), Agricultural Mechanization is the process of improving farm labor productivity through the use of agricultural machinery, implements and tools.

6. 6

7. 7 Estimated contributions from farm mechanization Source: Agricultural Mechanization Strategies in India(2013), CIAE

8. Table1: Evolution of Indian Agriculture Machinery Processes Traditional Practice Current Practice Land Development Tillage Seedbed preparation Plough Blade Harrow   Tractors Mould Board Plough Power Tiller   Sowing &Planting   Dibblers Seed Drill Zero Till Seed-cum-Fertilizer Drill   Weeding Hand Hoes Animal driven Weeding Tools   Power Weeder Plant Protection Dusters Power Sprayer   Harvesting & Threshing   Sickle Animal Trampling Self-Propelled Harvesters Tractor mounted Harvesters Threshers 8 Source: Anonymous, 2010

9. 9 Source : Goyle, 2013 Indian Scenario Figure 3 : Share of usage of machinery in different stages of crop production

10. 10 Govt . schemes to promote farm mechanization

11. 11 SMAM: Focus Areas Source: SMAM Guidelines

12. Custom Hiring 12 Custom hiring allows a farmer to gain short-term control of machinery without investing a large amount of capital.

13. 13 Custom Hiring Centers  

14. Custom Hiring Service Centers in Karnataka 14

15. 15 Source : Department of Agriculture, Karnataka Sl. No District No. of CHSCs Sl. No Districts No. of CHSCs 1 Bengaluru (U) 3 16 Dakshina Kannada 5 2 Bengaluru (R) 4 17 Udupi 3 3 Ramanagar 4 18 Dharwad 5 4 Kolar 5 19 Gadag 5 5 Chikkaballapur 6 20 Haveri 7 6 Tumakuru 11 21 Uttara Kannada 11 7 Shivamogga 7 22 Belagavi 13 8 Chithradurga 7 23 Vijayapura 5 9 Davangere 6 24 Bagalkot 7 10 Mysuru 7 25 Raichur 7 11 Chamarajnagar 4 26 Koppala 4 12 Mandya 7 27 Ballary 7 13 Kodagu 3 28 Kalaburgi 8 14 Hassan 8 29 Yadgiri 3 15 Chikkamagaluru 8 30 Bidar 6 Table 3: Custom hiring service centers in different districts

16. 16 Objectives of Custom Hiring Centers

17. Push factors 17

18. Pull factors 18

19. 19 Pull factors

20. 20 Individual Ownership v/s Custom Hiring Custom Hiring Individual ownership

21. tractor Rotovator Laser guided leveller Soil Pulveriser Automatic Nursery seedling machine Paddy weeder(2 Row) Paddy Transplanter(8 Row)

22. Drum seeder- Fiber body Conoweeder Power operated Paddy weeder Direct Sowing Drum seeder Package

23. Package of machinery under Sugarcane Sugar Cane Harvester Sugar cane harvester with infield tractor for loading the harvested cane Sugarcane planter 18.5 hp mini tractor with rotovator

24. Package of Machinery being supplied under Groundnut package Tractor with Rotovator Groundnut seed drill(gorru) Groundnut planter Groundnut digger cum shaker Groundnut thresher

25. Knapsack mist blower Power sprayer Aeroblast Sprayer Self propelled Power weeder Power tiller sweep cultivator Spraying and Intercultivation machinery

26. Advantages of custom hiring 26

27. Disadvantages 27

28. Social and Economic Benefits Social benefits 28

29. Increasing the efficiency of labor Reducing costs Increasing the area cultivated Undertaking more timely production Improving the quality of cultivation Increasing yields Adopting crop diversification Reducing harvest and post-harvest losses 29 Economic Benefits

30. Staffs in CHSCs 30

31. 31 Documents needed for registration

32. Specialties of Custom Hiring Centers 32

33. Pre-booking details 33

34. Pre- booking cancellation details Cancelling time Cancellation fee Remarks 72 hours before service - 100% cash back 48 hours before service 25% of booking amount 75% cash back 24 hours before service 50% of booking amount 50% cash back On the day of service 100% of booking amount No payment 34

35. Registers maintained in CHSC 35

36. Transparency in Custom Hiring Centers Providing machineries and implements for only pre-booked farmers when there is more demand with 20% of the amount. Unique Identification Number (UIN ) Visiting farmers field Taking feedback. Fixing the hiring charges Creating awareness Inspection of machineries 36

37. Terms and conditions of Custom Hiring Centers Preference will be given for the farmers who comes first. The responsibility of the driverless machineries should be taken by the farmers and it should be returned carefully after use. There will be no discount and bargaining on the rates fixed for the machineries. The machineries and implements should be used only for the purpose for which it is hired. 37

38. Fixing of the Hiring Charges: Districts Implements committee Joint Director of Agriculture Leading farm machinery manufacturer in the district Assistant Director of Agriculture T wo progressive farmer/Krishi prahsasthi awardee CHSC representative as members Fuel prices, repairs, salary of the drivers, wears and tears and other expenses. 38

39. Sl. No. Name of the Machinery In numbers Hiring rate 1 Multi crop thresher(Rs./quintal) 1 50 2 Hand sprayer(Rs./Day) 1 100 3 Power sprayer(Rs./Day) 2 300 4 Power tiller (Rs. /hr.) 2 250 5 Harvester/reaper (Rs. /hr.) 2 700 6 Cultivator(Rs./Day) 2 500 7 Rotary (36 blades) (Rs. /hr.) 3 700 8 Hole digger(Rs./dig) 1 18 9 Tractor operated seed drill(Rs./Day) 1 350 10 Tractor (Rs. /8 hr.) 4 1500 11 Disc harrow (Rs. /hr.) 1 1000 12 Mini Tractor (Rs. /8 hr.) 2 800 13 Battery sprayer (Rs. /8 hr.) 2 100 14 Rotary weeder (Rs/hr.) 2 200 15 Leveler(Rs./Day) 1 350 16 Rotavator(Rs.hr.) 2 700 17 MB plough (Rs. /hr.) 2 600 39

40. RESEARCH STUDIES

41. Economic Impact of Custom Hiring Services of Machinery on Farm Economy in Punjab Dharvinder Singh et al . (2011) Objective: To examine the economic viability of custom hiring services of farm machinery and implements by the Primary Agricultural Cooperative Societies. Methodology: Sample size: 64 Sample area: Punjab 41

42. Table 1: Returns over variable cost 2011-12 P articulars Machine owning farms Custom Hire-in farms Difference ( Custom Hire-in farms over machine owning farms) Gross returns 143879.54 136062.68 -7816.81 Return over variable cost 96353.39 86511.86 -9841.53 Net returns 1038.22 10134.01 9095.79 42

43. Accessibility of farm machinery services - CHSCs for small and marginal farmers - Hiremath et al. (2015) Objective : To assess the performances of CHSCs Methodology : Sample size – 10 CHSCs Sample area - Raichur 43

44. Table 1 Utilization of farm machineries/ equipments in CHSC’s in Raichur district, Karnataka Sl. No. Supplied farm machineries / equipments Utilization in CHSCs (N=8) Number Percent 1 Tractor 8 100.00 2 Rotovator 5 62.50 3 Multi-crop thresher 1 12.50 4 MB pough 5 62.50 5 Cultivator 2 25.00 6 Leveller blade 3 37.50 7 Blade harrow 4 50.00 8 Seed cum Fertilizer Drill 2 25.00 9 Knapsack sprayer 2 25.00 10 Power weeder 0.00 11 Winnowing Fan 0.00 12 Electronic balance 0.00 44

45. Table 2. Custom Hiring rates charged for farm machineries by Private and CHSCs in Raichur district, Karnataka (N =8) 45 Sl no Farm machineries/equipments with tractor Hiring charges Private individuals CHSC 1 Rotovator 650 600 2 Multi-crop thresher( Rs.per qtl ) 20 15 3 MB plough(Rs/hr 550 500 4 Cultivator (Rs/hr) 450 450 5 Leveller blade(Rs/hr) 500 400 6 Blade harrow(Rs/hr) 450 400 7 Seed cum fertilizer drill(Rs/hr) 700 650 8 Knapsack sprayer( Rs.rent per day) 100 50

46. Table 3. Costs and Returns of Custom Hiring services by CHSCs in Raichur district, Karnataka during 2012-13 Particulars Amount (Rs.) 1 Average Number of hours worked (hrs) 111 2 Average operational cost incurred 28,255 3 Average fixed cost 25,356 4 Total cost 53,611 5 Gross returns 62,433 6 Net returns 8,822 7 Returns per month 735 (n =8) 46

47. Table 4. Performance of CHSCs in Raichur district, Karnataka based on net returns Sl. No Particulars Per cent of CHSCs 1 High Performing CHSCs (Net returns > Rs. 54,500) 25 2 Medium Performing CHSCs (Net returns < Rs.20,000) 25 3 Low Performing CHSCs (Negative net returns) 50 47

48. Custom hiring of farm machinery in Punjab : Impact and Policies Sukhpal Singh et al. (2013) Objective: To document the practice of custom-hiring of tractor in agriculture and its impact on employment of the farmers of the Punjab Methodology: Sample size -120 Sample area - Punjab 48

49. Table 1: Employment on selected farms in crop production in Punjab (hours/annum/acre) Farm category FL PL CL TE With owned tractor Marginal NA Small 211.30 0.00 119.30 330.6 Semi- medium 145.76 20.36 64.98 231.1 Medium 111.20 26.60 97.41 235.21 Large 79.86 37.16 112.42 229.44 Sub-total 109.87 28.66 96.31 234.84 With custom hired tractor Marginal 182.29 0.00 104.88 287.17 Small 137.80 0.00 79.74 217.54 Semi- medium 79.38 28.36 116.50 224.24 Medium 58.75 0.00 41.25 100 Large NA Sub-total 112.29 11.67 94.95 218.91 49

50. Table :2 Constraints and suggestion regarding custom hiring farmers (N=40) Particulars No % High cost of custom hiring services 38 95.00 Lack of timely availability of tractor services 29 72.50 Inadequate availability of tractor services 22 55.00 Owning tractor-a social status 19 47.50 Develop cooperative custom hiring machinery service centres 39 97.50 Reduce costs of custom hiring services 38 95.00 Timely availability of machinery 30 75.00 More awareness for hiring in machinery 18 45.00 Govt. support for fixing rates , subsidising fuels and lubricants etc 15 37.50 50

51. Farm Mechanization: Everywhere Tillage & seedbed Preparation Sowing/ Planting Fertiliser Application Irrigation Harvesting Post Harvesting Inter Cultivation Plant Protection Mechanized Solutions for whole chain Mechanisation is clearly the answer to key performance parameter at every stage of cropping cycle

52. Advantages of farm mechanization Improves utilization efficiency of inputs such as seeds, chemicals , fertilizers and energy. Ensures timeliness of farm operations leading to higher productivity and cropping intensity Reduce cost of production and increases agricultural income Reduces drudgery and improves safety in operation of farm machinery. 54

53. Problems in farm mechanization Small size and scattered land holdings Lack of suitable machinery for Indian farming conditions Financial inability of the small farmers Lack of proper knowledge about farm machineries Lack of repair and replacement facilities especially in the remote rural areas. Limited availability of sale outlets. Lack of accessibility for procurement, repair and maintenance. Source: Mechanization of agriculture – Indian scenario, CIAE 55

54. SWOT analysis of Agricultural Mechanization in India STRENGTHS Large infrastructure of over 20,000 manufacturers in small scale industry Vast network of academic and R&D institutions including AICRPs Trained manpower for R&D in agricultural engineering Over 100 cooperating centers of AICRPs in the area of agricultural engineering Computer Aided Design adopted by the institutes for high pace of R&D. Source: Agricultural Mechanization Strategies in India, 2013

55. WEAKNESSES Unreliable after sales service of agricultural equipment Poor TOT (agricultural engineering technologies) through state departments Poor liaison with industries for R&D and commercialization Non effective feedback system Non systematic marketing of agricultural equipment. 57 Source: Agricultural Mechanization Strategies in India, 2013

56. OPPORTUNITIES Entrepreneurship development for custom hiring of farm machinery and agro-processing equipment Post harvest loss reduction and value addition at the production catchments through rural level agro-processing centers Opportunity to increase micro-irrigation in irrigated area. 58 Source: Agricultural Mechanization Strategies in India, 2013

57. THREATS Low profitability in agricultural enterprises due to subsistence farming Migration of farmers from agriculture Fragmentation and continuous reduction of operational holdings Slow pace of R&D and commercialization 59 Source: Agricultural Mechanization Strategies in India, 2013