With highly effective crop planning and cropping techniques, India dominates the Agricultural domain as one of the world’s largest producers. But a recent trend in India’s agriculture that alarms economists globally is the Tractor Industry’s stagnation in the northeastern regions of India. Due to various reasons, Tractor Industry is facing difficulties and challenges in some parts of India. But, on the other hand, the best parts of the country are witnessing great growth rates in the sales of tractors and other Farm equipment.
This blog is a special report to identify the reasons for the Tractor Industry’s stagnation and challenges, specifically in North East India.
Inadequate Finance
The major factor that has hit the Tractor Industry is Inadequate Finance in North East India. Farmers who earlier used to avail the benefit of loans and credit facilities provided to them for buying Tractors and Farm Implements were denied or delayed, which further led to a decline in the sale of Tractors in the entire region.
This can be seen as a consequence of the poor banking infrastructure and low financial literacy in this region, which made it hard for farmers or lenders to access or offer such facilities. Another reason that can be accounted for such a setback is the high-interest rates and stringent eligibility criteria for availing loans and subsidies, which created a barrier for many farmers who could not afford or qualify for them.
This resulted in a major setback in the aspirations of the farmers who planned their Farm Mechanisation accordingly. This has impacted not only the lives of the farmer but also the Tractor Industry to a very large extent. Due to sudden changes in the financial scenario, farmers left disappointed are now waiting for another sudden change that would ease the credit availability, and they would finally buy their dream machine.
This uncertainty and not-so-favourable expectations have delayed the process further, along with declining the sales of tractors to an all-time low. To secure a positive outcome to this negative situation, a lot of planning along with financial support is required, which would first introduce attractive schemes for the farmers and then bring the Tractor Industry to a level that can be as competitive as its counterpart in other parts of the country.
Long Retail Process
Along with the stagnation of subsidies, another factor affecting the tractor industry is the long or tedious retailing procedure that dealers had to undergo. But, of course, such a state may directly result from other things.
This has severely hampered the set of Agricultural Values of North East India. In addition, the dealers encountered a new operational difficulty due to the protracted retailing process in the region, which supposedly exposed them to the risk of losing customers, resulting in a significant drop in sales for the industry. But of course, if you’re going for Swaraj XM, you’ll get all the support you need throughout the process.
Lack of Mechanisation
A key issue affecting the tractor industry in this region is the need for mechanisation. There needs to be a reduced usage of machines and equipment to accomplish agricultural chores. Farming productivity, efficiency, and profitability may increase by mechanisation by decreasing drudgery, saving time and labour, increasing crop quality and quantity, and preserving natural resources. However, people prefer manual land preparation, planting, weeding, harvesting, or threshing. Unless this changes, the agriculture industry won’t see growth as projected in the other parts of the country.
The farm power availability indicates the amount of power available per hectare of cultivated land for performing agricultural operations. This region’s average farm power availability is only 0.71 kW/ha. This number is much lower than the national average of 2.02 kW/ha. The low farm power availability implies that the farmers in this region rely more on human and animal power.
Why is there a lack of mechanisation? Let’s see some of the factors in our blog here:
Small and fragmented land holdings
1.1 ha – That’s what the average size of land holdings in this region is. Such an amount is smaller than the national average of 1.15 ha—the land holdings, when fragmented into small plots due to inheritance and population pressure. The small land holdings make it difficult and uneconomical for the farmers to adopt tractors and other farm implements.
Hilly terrain
The northeastern region of India comprises mostly hilly and mountainous areas. These areas have steep slopes, narrow valleys, and uneven surfaces. The hilly terrain poses challenges for using tractors, and other farm implements that require flat and levelled fields. Moreover, the hilly terrain also increases the risk of soil erosion, landslides, and flooding. These factors can damage tractors and other farm implements. So, investing in a quality tractor such as the Swaraj XT series is advisable.
Lack of awareness and training
The farmers in this region need higher levels of education and awareness about the benefits and methods of farm mechanisation. They also need more training and skills to operate and maintain tractors and other farm implements. As a result, they often need clarification and apprehensions about the cost, suitability, and safety of tractors.
Conclusion
Farming has been affected by the stagnation of the Tractor Industry in North East India. This is how stagnation is a challenge for the industry and the entire nation.
The prosperity of the Farmer is directly related to the mechanisation of his farm fields. When the mechanisation process faces difficulties, the entire cropping pattern suffers a huge impact.
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