Research & Development needs In Farm Mechanization

Escorts Ltd, India

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• Indian Agriculture - Snap Shot

• Tractor Market Trend

• Farm Mechanization Potential and R&D

interventions required

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“Indian Agriculture”

Snap Shot and Potential

Indian Agriculture Strengths

• Highest Arable Land - 47% of total land against Avg. 11 % in the world

• Round the Year Cultivation - 20 Agro-climatic regions and 46 Soil types suited for round the year cultivation

• Ranks first in production of Pulses, Tea, Jute and allied fibers

• Second largest producer of Wheat, Rice, Groundnut, Fruits and Vegetables, Sugarcane & Third largest producer of Mustard, Potatoes, Cotton lint, etc.

• 102.8 Million Cultivators, over 7.5% own > 4 ha. Avg farm land size <2 ha,

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LARGE > 10 ha (1.2 mil)

Medium 4-10 ha(6.3 mil)

Semi medium 2-4 ha(13.1 mil)

Small 1 -2 ha( 20.9 mil)

Marginal < 1 ha(61.3 mil)

Bottom of Pyramid Country; Affordability, Equipment size are key to success. Emerging Cooperative Ownership model / custom hiring use high end equipment

Average Land Holding and Number of Farmers

The Agricultural Equipment market is driven by several factors

5GOVT. INVESTING 300 Mil $ PER DAY IN RURAL DEVELOPMENT INCLUDING FINANCING

Potential Exists in Improving Farm Power per Hectare

Source : World Bank

WestGermany

Italy

UKFrance

Poland

Korea

USATurkey

BrazilRussia

Pakistan

India

Even at this level India is the largest producer of tractors in the World

0

0.5

1

1.5

2

2.5

3

3.5

4

4.5

OR CG RAJ MAH BIH GUJ MP KAR ALL INDIA

UT AP UP HAR PUN

Farm Power Availability (kW/ha)

Yield (t/ha)

Impact of mechanization on productivity

Direct correlation of higher productivity with higher Mechanization level

Source: Indiaagristat.com

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Crop Scenario

Paddy Wheat

2988.66590.1

4365.0

2040.1 9000

1603.3

5143.4 2318.1

2976.72840.8

India very low onProductivity

* Figures represents Yield of major crops during 2009 ** Yield is defined as kg/haSource: FAOSTAT

Opportunity for adoption of Technology

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“Tractor Market”

Overview

Largest Tractor Market in World, Set to cross 500,000 tractors a year mark,

Indian Tractor Industry Trend

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612

656

678

690

712

734

756

790

812

834

856

878

890

912

934

956

978

990

'012

034

056

078

0910

1718

0

100

200

300

400

500

600

700

800

900

1000

In T

ho

usa

nd

s

Cut in Im-port

Credit Squeeze

Restrict Fi-nance

Draught, market correction

Famous Re-cession

Exponential trend line

Polynomial trend line

TIV is growing @ 20% plus

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Horse Power Segment Trend

Shift towards higher HP is evident due to increased tractor usage

Huge opportunity at entry level, virgin sub 15 HP segment replacing bullock

2003-04 2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

10.5 8.6 7.9 7.8 6.7 7.3 7.2 7.0

14.412.6 12.0 12.7 11.7 12.6 12.3 10.5

33.6 34.3 34.1 32.531.8 31.6 31.9

31.5

24.4 26.2 26.8 26.425.5 24.1 24.4

25.5

10.7 11.2 12.4 13.114.5 12.6 12.1 13.5

7.011.8 12.0

>50HP45-50HP41-45HP36-40HP31-35 HP25-30 HP

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“Farm Mechanization Opportunities”

Indian Agriculture : key vectors and critical success factor

Increase in Production

Productivity increase [Yield/ha]

Enhancing Cropping intensity

Efficient & mechanised operationsCritical Success Factor

Key Vectors

Objective

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Timeliness Efficient input use &

placement Crop cycle management Reduce losses

Shorten crop cycle – short duration varieties

Efficient water management

leads to

Tillage& seedbed

Preparation

Sowing/ Planting

Fertiliser Application Irrigation Harvesting Post

Harvesting

Inter Cultivation

Plant Protection

Gaps in Farm Mechanisation - Mechanisation levels

CropCycle

Level

All CropsCrops

Tractor Usage

Mech LevelHigh Low

Tillage& seedbed

Preparation

Sowing/ Planting

Fertiliser Application Irrigation Harvesting Post

Harvesting

Inter Cultivation

Plant Protection

Gaps in Farm Mechanisation - Mechanisation levels

CropCycle

Level

Levelling Land reclamation Sub soiling Raised beds

Mech.Gaps

All CropsCrops

Tractor Usage

Mech LevelHigh Low

Tillage& Seedbed

Preparation

Sowing/ Planting

Fertiliser Application Irrigation Harvesting Post

Harvesting

Inter Cultivation

Plant Protection

Gaps in Farm Mechanisation - Mechanisation levels

CropCycle

Level

Mech.Gaps

Crops

Tractor Usage

Transplanting Rice Horticulture

Planting Sugarcane Potato & Root Crops

Plastic Mulch & planter

GrainsHorticultureCash Crops

Mech LevelHigh Low

Tillage& Seedbed

Preparation

Sowing/ Planting

Fertiliser Application Irrigation Harvesting Post

Harvesting

Inter Cultivation

Plant Protection

Gaps in Farm Mechanisation - Mechanisation levels

CropCycle

Level

Mech.Gaps

Crops

Tractor Usage

Spreaders

Manure Fertilizer

All Crops

Mech LevelHigh Low

Tillage& Seedbed

Preparation

Sowing/ Planting

Fertiliser Application Irrigation Harvesting Post

Harvesting

Inter Cultivation

Plant Protection

Gaps in Farm Mechanisation - Mechanisation levels

CropCycle

Level

Mech.Gaps

Crops

Tractor Usage

Conservative farming

Sub surface Irrigation

Sprinkler

All Crops

Mech LevelHigh Low

Tillage& Seedbed

Preparation

Sowing/ Planting

Fertiliser Application Irrigation Harvesting Post

Harvesting

Inter Cultivation

Plant Protection

Gaps in Farm Mechanisation - Mechanisation levels

CropCycle

Level

Mech.Gaps

Crops

Tractor Usage

Sprayers

Dusters

All Crops

Mech LevelHigh Low

Tillage& Seedbed

Preparation

Sowing/ Planting

Fertiliser Application Irrigation Harvesting Post

Harvesting

Inter Cultivation

Plant Protection

Gaps in Farm Mechanisation - Mechanisation levels

CropCycle

Level

Mech.Gaps

Crops

Tractor Usage

Tiller

Weeder

Ridger

Row CropsHorticulture

Mech LevelHigh Low

Tillage& Seedbed

Preparation

Sowing/ Planting

Fertiliser Application Irrigation Harvesting Post

Harvesting

Inter Cultivation

Plant Protection

Gaps in Farm Mechanisation - Mechanisation levels

CropCycle

Level

Mech.Gaps

Crops

Tractor Usage

Digger

Harvester

Pickers

Balers

Reapers

Crops exceptCereals

Mech LevelHigh Low

Tillage& Seedbed

Preparation

Sowing/ Planting

Fertiliser Application Irrigation Harvesting Post

Harvesting

Inter Cultivation

Plant Protection

Gaps in Farm Mechanisation - Mechanisation levels

CropCycle

Level

Mech.Gaps

Crops

Tractor Usage

Grader

Dehusker

Cleaner

Dryer

All Crops

Mech LevelHigh Low

Customer Needs Across Ag Value Chain

Tillage& Seedbed

Preparation

Sowing/ Planting

Fertiliser Application Irrigation Harvesting Post

Harvesting

Inter Cultivation

Plant Protection

CropCycle

RiceHorticulture

Sugarcane Potato

Maize , cereals

GrainsCottonHorticultureSugarcane PotatoMaize Straw/stalksForage

All Crops

All Crops

StorageTrash Management

MechanisationHigh Low

All Crops

All Crops

Crop Care

Harvesting, Crop Care and Seeding are top priority for the farmer

Bushy Hybrids

Changes required in Ag Practices (1/2)

• 4 /5 ft row spacing

• Erect varieties

Compact hybrids withprecision planting

Cotton

Sugarcane

Vegetables

Optimal spacing for machine entry

Provision for Head land

Changes required in Ag Practices (2/2)

Area of Collaboration

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• Appropriate technology requirement

• Source

Identify

• Evaluate adaption• Indigenize for cost

competitiveness

Adapt• Performance

validation• Propagate for

adoption

Validate

Individually Govt. and Private sector is doing their bitNeed to develop synergy for effective resource utilization and implementationEducate farmers about correct farm machinery and practices

Sum Up

• The face of Indian Agriculture has changed in the past 5-10 years. • Mechanized solutions are fast replacing the traditional labour

intensive solutions.• Tractor usage and demand is growing steadily. Tractor driven and

self propelled farm equipment are needed at every stage in crop cycle

• Robust R & D input require for adaptation/developing appropriate implements/farm machinery – Research institutes may offer design and testing facilities/undertake specific projects.

• Need to build synergy between Govt. institutes and Private sector for effective utilization of resources.

• Govt. Institute can propagate new farm practices for adopting new technology

• Create a window for sharing information

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Thank You!

Jai Kisan

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Website : www.escortsagri.com & www.escortsgroup.com