Initiatives like SMAM and the National Food Security Mission are aimed to provide financial aid when acquiring agricultural equipment, paving the way for the Used Agricultural Equipment market In India to reach over 3500 units sold by 2026, with a CAGR of 22.7%, as per findings released by Ken Research.
1. The Sub-mission on agricultural mechanization aims to provide subsidies of 40%-60% to small and marginal farmers, to enable mechanization at a granular level.
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The scheme of SMAM (Sub mission of Agricultural mechanization), revised for 2020-2021, got implemented in all the states, to promote the usage of farm mechanization and increase the ratio of farm power to cultivable unit area up to 2.5 kW/ha. The financial assistance being provided is up to 40% of the total value of implementation, with added 10% aid to SC, ST, Small & Marginal farmers, Women and NE States beneficiary.
2. The Availability of Used Agricultural Equipment at Reasonable Prices Enables the Indian Economy's Agriculture and Allied Sectors to Add 20.2% More Gross Value in 2021.
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Agriculture is the primary source of livelihood for about 58% of India’s population. Gross Value Added by agriculture, forestry, and fishing was estimated at Rs. 19.48 lakh crore (US$ 276.37 billion) in 2020. Share of agriculture and allied sectors in gross value added (GVA) of India at current prices stood at 20.2% in 2021. Used agricultural equipment supports farmers in maintaining farm and turf area at affordable rates. While the difficulties created by COVID induced lockdowns adversely affected the performance of the non-agricultural sectors, the agriculture sector came up with a robust growth rate of 3.4 % at constant prices during 2021, with increasing adoption of used farm implements among Indian farmers.
3. Other initiatives such as National Food Security mission and Rashtriya Krishi Vikas Yojna have announced substantial subsidies for purchase of farm equipment.
National Food Security Mission (NFSM): Assistance (up to 50% the cost of machinery) to be provided for machinery such as pump sets, tractor mounted sprayers, seed drills, zero till seed drills to varying degrees.
Rashtriya Krishi Vikas Yojana (RKVY): Farm mechanization comes under production growth stream of RKVY – with 35% of the outlay. Assistance for large equipment (tractors, combine harvesters, sugarcane harvesters, cotton pickers, etc.) is available for establishing custom hiring centers (CHCs).
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India Used Farm Equipment Market