Can Tractors Boost Rural Economy in India

Table of Content

• Introduction
• Tractor Industry in India
• How Tractors Have Given a Boost to Rural Economy
  • Increased Productivity and Efficiency
  • Time and Labour Savings
  • Increased Agricultural Output
  • Diversification of Farming Activities
  • Access to Credit and Financial Inclusion
• Challenges and Complexities
• Government Steps to Increase Access to Tractors
• A Holistic Approach: Tractors as Catalyst

Introduction

More than two-third of India’s population live in rural areas and their main occupation is agriculture. To better the lives of rural people it is essential that agriculture is given a boost and what better than tractors that have mechanised the farming to a larger extent.

Tractors have help boost farm productivity by reducing the time, effort and labour required to complete a farm activity. Tractors are now a symbol of modern farming in India, powering through fields with their strong engines and robust frames.

Though tractors have made a big difference in the rural economy, but can tractors alone be the driving force for the entire rural economy? Let us see in the section given below.

Tractor Industry in India

India is the largest market for tractors globally. Our volume is nearly 2.5 times that of China and 3.5 times that of the United States. In the fiscal year 2022-23, around 9.5 lakh tractors were sold within the country, totalling 4 million over the last five years.

Despite their widespread use, tractors are owned by only a small percentage of farmers in India. As per the survey conducted by the National Statistical Office (NSO), only 4.6% of farmers own tractors.

The majority, especially small-scale farmers, either rent tractors or rely on animal and manual power. This situation leads to delays in farming activities and inefficiencies throughout the crop production process.

How Tractors Have Given a Boost to Rural Economy?

Increased use of tractors in agriculture sector of India has given a boost to rural economy in true sense. It has helped increased productivity and efficiency. And this in turn has increased agricultural output.

Increased Productivity and Efficiency

Tractors have replaced traditional manual labour and animal-powered ploughing, making farming tasks faster and more efficient.

Tractors can handle various activities like ploughing, tilling, seeding, harvesting, and transporting goods.

By enabling farmers to complete these tasks quickly and effectively, tractors contribute to increased agricultural productivity and, in turn, support the growth of the rural economy.

Time and Labor Savings

Traditional farming used a lot of manual labour, which was hard and took a long time. Tractors save time and reduce the need for lots of workers because they can do tasks that used to require many people.

The save time and labour, in turn, lets farmers do other money-making activities or spend more time growing crops. It helps improve the farmers' finances and adds to the rural economy.

Increased Agricultural Output

Tractors help farmers grow more and better crops. They allow farmers to work on larger areas of land quickly, increasing the amount of crops they can grow.

Tractors also make farming more accurate and efficient, resulting in more crops. The extra crops not only meet local needs but also give farmers a chance to sell them, making money and boosting the rural economy.

Diversification of Farming Activities

Tractors help farmers do different types of farming, making the rural economy stronger. Farmers can use tractors for modern techniques like precision agriculture, greenhouse farming, and drip irrigation.

These farming types allows them to grow different crops and reduces the risk of depending on just one crop.

Also, tractors help with cash crops and high-value crops, which can make more money and improve the overall rural economy.

Access to Credit and Financial Inclusion

Tractors coming to the rural areas have made it easier for farmers to get money and loans. Loan against tractor becomes a feasible option where in tractors can be used as a guarantee for loans. It helps farmers get the money they need to improve their farms or do more farming.

Also, farmers can rent or lease their tractors to others, making extra money. This helps farmers and makes the overall rural economy better.

Challenges and Complexities

While tractors transform farming, they function within a complicated rural environment:

• Land Distribution: Unequal land ownership means that many farmers don't have the resources to buy a tractor, restricting their access to these advantages.
• Infrastructure: Bad roads and inadequate storage can cause problems, making it hard to transport produce efficiently and reach markets easily.
• Market Volatility: Changing crop prices and relying on middlemen can reduce the benefits of higher productivity.
• Value Chain Limitations: The absence of facilities for post-harvest processing and value addition restricts farmers from maximising profits beyond selling raw produce.

There are upcoming challenges, including the implementation of the Bharat Stage TREM V emission standards. The government introduced the TREM IV emission norms for tractors with more than 50 HP in January 2023. There are now several TREM IV tractors for farming in India.

Even though this move aims to make the tractors more environmentally friendly, the manufacturers will have to invest in new engine technologies. The manufacturing cost will increase. It will make it more challenging for farmers to choose between affordability and efficiency.

Government Steps to Increase Access to Tractors

• The government has cut down the tests a new tractor model must pass at the Central Farm Machinery Training and Testing Institute. The number of tests was 17, but now it is 4.
• Original equipment manufacturers are now allowed to certify these tests on their own.
• The testing time has been reduced from more than 9 months to just 75 working days.

A Holistic Approach: Tractors as Catalysts

Tractors can boost rural progress, but they are not the only solution. While their efficiency and power can increase productivity and income, other factors are crucial, too.

Investments in infrastructure, market access and developing the value chain are equally important to turn agricultural gains into overall rural prosperity.

To enhance the rural economy in India, it is crucial to take a comprehensive approach, considering the interdependence of different factors.

Utilising tractors effectively is important, but it's equally vital to tackle issues like uneven land distribution, infrastructure constraints, market challenges and the importance of value addition.

By establishing conditions for fair and sustainable agricultural development, we can ensure that the impact of tractors harmonises with the prosperity of vibrant rural communities throughout India.