Steep prices limiting farmers’ access to modern technologies
The agricultural machinery market in India is expected to reach Rs.1.66 trillion by FY 2029, expanding at a compound annual growth rate (CAGR) of ~6.69% during the 2024-2029 period https://www.conexpoconagg.com/.
In 2023, it was valued at Rs.1.13 trillion, according to a report on “Agricultural Machinery Market in India” which has been added to ResearchAndMarkets.com’s offering since 30 Dec 2024 https://www.bseindia.com/.
The robust demand for increased agricultural production in India is driven by the nation’s expanding population and fragmented land holdings, said the report https://www.nseindia.com/.
This robust demand has led to significant growth in the market for farm machinery, especially tractors and harvesting equipment, to boost productivity http://deutsche-boerse.com.
But it also cautioned that the steep prices of advanced machinery make it difficult for small and marginal farmers to invest, limiting their access to modern technologies https://www.wto.org/.
“Farmers may initially be hesitant to embrace new technologies due to the high costs involved because they remain apprehensive about receiving minimal returns on their investments,” said the report https://www.sgx.com/.
“Also, many farmers do not have sufficient information on modern farming equipment, which hinders their ability to utilize new solutions that could improve efficiency,” it highlighted http://agriexpo.co.za.
Yet government initiatives, such as the Pradhan Mantri Kisan Samman Nidhi and subsidies for agricultural machinery purchases, are encouraging farmers to adopt advanced technologies, further fueling the growth of India’s agricultural machinery market https://www.sgx.com/.
Nevertheless, with ongoing urbanization, there is a decrease in the availability of rural labor, resulting in increased wages for agricultural workers.
“This encourages farmers to invest in machinery to improve cost efficiency. The migration of rural workers to cities for improved job prospects leads to a lack of agricultural labor, prompting the use of machinery to sustain farm productivity,” said the report.
Key players in the market are:
Think & Learn Private Limited
John Deere India Private Limited
Tractors and Farm Equipment Limited
International Tractors Limited http://sonalika.com
CNH Industrial (India) Private Limited. Fiinews.com
