Emerging Players in Second Hand Farm Machinery Market – Ken Research
India Used Agricultural Equipment market has grown from nearly INR 19k Crores in 2016 to being valued at approx. INR 45k Crores in 2021, as per findings released by Ken Research.
1. India is No Farther Behind in Comparison to Major Producers in the World, in Terms of Mechanization: Share of Farming Entities Employing Mechanical Support in India Stands at Nearly 46% as of 2020.
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This South Asian nation (India) ranked second in the world for both rice and wheat production. Farmers are being pushed into farm mechanization by the additional farming operations needed to sustain the output. Also, due to the shifting manpower preference from purely farm-oriented activities to allied industries, there is a persistent scarcity of labor-intensive agricultural operations in India. Given that the labor in agriculture is shrinking and migrating to urban regions, rapid urbanization is also one of the main causes of the growth in agricultural mechanization. For instance, according to World Bank data, the proportion of individuals who are employed has been declining for a while. Agriculture accounted for 44% of all employment in 2017 but dropped to nearly 41% in 2020. Hence, it is projected that during the future years, the manpower scarcity would fuel and raise the need for farm equipment.
2. Small land holding area makes the renting of equipment more practical for most farmers; farmers having access to higher machinery capacity are the suppliers.
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India has a majority land holding size of area below 0.5 hectares, which is continuously decreasing. Rental market for agricultural equipment, is a viable option for the marginal holding farmer to allow mechanization due to its lower capital requirement and being cheaper than individual ownership. Rental sector is almost entirely unorganized, with local players dominating the market with their established connections. A majority of farmer co-operatives and association also pool their resources to rent equipment on need basis.This is because farmers in need of renting equipment also fall in the lower income group, with those renting out equipment being large farmers themselves, forming a symbiosis among farmers.
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India Used Farm Equipment Market
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