The Custom Hiring Perspective

The following report highlights the current constraints and challenges as well as the potential of Custom Hiring in India, concluding that despite several schemes and support programs on central and state level, especially private players are not yet inclined to invest due to scattered land holdings.

Agriculture, as a significant contributor to employment and livelihood creation, continues to be the mainstay of India's rural economy. Following the Green Revolution, India witnessed a remarkable development: India today is the largest producer of milk, pulses and tea and it is the second largest producer of wheat, rice, fruits and vegetables. However, with increasing population leading to rapidly growing food demand, it is critical to build efficiencies in agriculture to achieve meeting the demand and to sustain food security. Especially innovative technological solutions at all stages of the value chain are the key to a modern, efficient and sustainable agricultural production in India. Farm mechanization in India is still in its nascent stages. The agriculture sector faces critical challenges like declining land holding sizes, high cost of farm machinery and equipment, inappropriate technology and undeveloped markets. With continued decrease in average farm size, more farms will fall into the adverse category thereby making individual ownership of agricultural machinery increasingly uneconomical. In this regard Custom Hiring Centers can play a pivotal role in introducing high technology agricultural machinery with the objective to boost crop production, improve quality, timeliness and efficiency of agriculture operations.

Yes Bank and German Agribusiness Alliance at OAV - German Asia-Pacific Business Association together with Federation of Indian Chambers of Commerce & Industry (FICCI), with the support of the Federal Ministry of Food and Agriculture and with recognition of the Ministry of Agriculture and Farmers Welfare have created a report on Farm Mechanization in India - The Custom Hiring Perspective. The report highlights the current constraints and challenges as well as the potential of Custom Hiring in India, concluding that despite several schemes and support programs on central and State level, especially private players are not yet inclined to invest due to scattered land holdings. In order to unlock the potential of custom hiring for making modern technology available for farmers around the country, besides proper and conducive regulation on custom hiring services, dissemination of knowledge and training to farmers and farm workers are vital.