EIMA Agrimach Amalgamation of Global Agri Technology

In the past decades, there has been a paradigm shift in the agriculture sector. Shortage of labour and simultaneous pressure of getting higher production have pushed farmers to adopt farm machineries. In the emerging Indian market, global companies are also making their footprint. On the sidelines of EIMA Agrimach, MOHD MUSTAQUIM reports about the global players making inroads in India.
EIMA Agrimach Amalgamation of Global Agri Technology

The Federation of Indian Chambers of Commerce and Industry in association with FederUnacoma – Italian Agricultural Machinery Manufacturers Federation, Ministry of Agriculture, Government of India and Indian Council of Agricultural Research jointly organised a 3-day Agri Machinery Exhibition, EIMA Agrimach in New Delhi during 3-5 December, 2015.

More than 200 farm machinery and agriculture technology providers from across the world participated in the exhibition which registered a overwhelming footfall of more than 30,000 at the mela ground of Indian Agricultural Research Institute.

Over the years, EIMA Agrimach has become a single window interface to the global agricultural equipment and machinery market, current trends, growth drivers, new product innovations, recent industry activity, and undiluted focus on global majors who represent the booming agri machinery sector.

In the 2015 edition of the exhibition, besides increasing the number of exhibitors, a more robust global flavour was given. The event provided a platform for interaction and exchange of idea to the global agri machinery manufacturers, academia, research scholars, farmers among other stakeholders. Many farm machinery companies showcased their innovations and launched their new products.

Focusing on technological advancements, the US tractor manufacturer, John Deere launched three new models, AC Cabin, Perma Clutch and Power Reverser in the first day of the exhibition.

Launching the new models, Satish Nadiger, Managing Director, John Deere India said, “John Deere is committed to bring right solution to the Indian farmers as per their requirements. We continue to design and manufacture machines that feature advanced technology and proven product reliability. This is important to modernising Indian agriculture.”

The farm mechanisation in India has diversified from tractors to combine harvesters, seed drilling machines, threshers, laser levelers, rice transplanters, irrigation equipments and many more. The joint efforts made by Government and industry have led to such progress in mechanisation over the years. The agriculture equipment market in India is presently valued at approximately US$ 6 billion and has big potential for further growth.

Looking at the growth of in the sector, the global farm machinery companies are eyeing in the Indian market and coming up with technological advancements and consolidated solutions for the farmers.

The rise in non farm jobs in rural India has led to fall of agricultural labours. During 2001 to 2011, the country registered a fall of around one crore labourers from the sector. According to a senior official at CLAAS India, the Indian arm of German agri machinery company CLAAS, “The shortage of agricultural labour has pushed the demand for machinery. This increasing demand comes with people’s desire for more comfortable machines. And therefore, we provide Crop Tiger with air-conditioner, music system and innovative driving system, making the whole harvesting operation much more convenient.”

While facing challenge of labour shortage, Indian agriculture sector needs to increase the farm production to feed the increasing population. For this, the Government of India gives special impetus on farm mechanisation. In the 12th five year plan, the Government has introduced Sub-Mission of Agricultural Mechanization (SMAM). Under this mission, the Centre provides 50 percent subsidy on farm machineries to SC, ST, women and farmers in the north eastern region. For other categories, the 40 percent cost of the machinery is borne by the Government. Besides, the State governments also give additional subsidies on farm machineries, which varies in different States as per their respective schemes.

Besides, tackling the shortage of labour, it has been evident that mechanisation reduces the input cost as well as help increase the the agricultural production. After Green Revolution, States where farm mechanisation was given special focus, have achieved higher productivity than the States with lesser farm mechanisation.

Eyeing the emerging Indian farm machinery market, the Japanese farm machinery manufacturer, Kubota entered to India in 2009. Since then, the company is getting good response from the farmers. Primarily, Kubota makes tractors, rice transplanters and horticulture machineries.

“We make tractors ranging from 21 HP to 55 HP which cost to the farmers from Rs 4 lakh to Rs 7.5 lakh. For financing, we have tie ups with 38 commercial banks and Non Banking Financial Institutions (NBFCs), Puneet Kaundal, a senior official at Kubota Agricultural Machinery India says.

Started operating from Southern States Tamil Nadu, Andhra Pradesh and Karnataka 5 years ago, the company has extended its distribution network across India from Jammu & Kashmir, Punjab, Haryana, Rajasthan, Maharashtra to Madhya Pradesh, Chhattisgarh, Odisha and West Bengal.

While a majority of global companies are directly operating in Indian market, some companies are making its footprint through local traders. Nashik based Minakshi Enterprises imports various types of farm machineries. Two biggest attractions it has in the forms of tractor mounted Italian sprayers, Caffini Reverse and Vma Automizer & Sprayer for horticulture orchards and grape farming respectively.

“We are importing such machineries since 2011. We have, so far, sold around 800 sprayers in Maharashtra, Andhra Pradesh and Karnataka. The success of the business has encouraged us to expand our dealers’ network across the country. Hence, looking for dealers, says Dinesh Adsare, proprietor of the company.

A Caffini Reverse costs to Rs 4.5 lakh. For this, the company has tie up with Bank of Maharashtra. The machine sprays in one acre of orchards in 40-45 minutes and consumes 1.5 litre of diesel.

With lesser than five acres of landholding, the 80 percent of Indian farmers are small and marginal. Thus, the farm machinery companies need to focus on them by providing customised solutions. The future of agricultural growth lies with them. 

The Changing Face of Rural India