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Custom hiring: The impact on Paddy Cultivation in Sri Lanka

  1. Melvin Samarasinghe Director AGFOUR ENGINEERING SERVICES Immediate Past President Agriculture Machinery Manufacturers and Suppliers Association Sri Lanka Phone +94714729480 Email melvin@sltnet.lk
  2. CUSTOM HIRING IMPACT ON PADDY CULTIVATION Melvin Samarasinghe melvin@sltnet.lk +94714729480
  3. CUSTOM HIRING IMPACT ON PADDY CULTIVATION IN SRI LANKA
  4. MACHINERY AVAILABLE CUSTOM HIRING IN PADDY CULTIVATION
  5. LAND PREPARATION -95% MECHANIZED Machine and type No. of Machines Available Activity Hire charges /ha1999 2015 2w Tractors 7hp &12hp 55000 171222 0.75 ha/ Tractor Rotary Tiller with L shape Blades 18000 4w Tractors 35hp-65hp 1500 54946 30 ha /Tractor Land Preparation Tine Tiller and rotary 25000 to 30000
  6. CROP ESTABLISHMENT --- 1% MECHANIZED Machine and type No of machines Activity Hire charges /ha 1999 2015 Self-Propelled Transplanters n/a 600 Transplanting with Nursery cost planting 1st weeding cost 25,000
  7. CROP MANAGEMENT - 100% MECHANISED Machine and type No of Machines Activity Hire charges In Rs.1999 2015 Sprayers Manual 105000 393795 Weedicide Application 100-150 per tank Sprayers Power n/a 92412 Weedicide Application 100 per tank Weeders Power n/a 2350 Mechanical weeding 6000-7500 per ha Fertilizer Application is manual
  8. THRESHING & HARVESTING 95% MECHANISED Machine and type No Of Machines Available Activity Hire charges Rs.1999 2015 Threshers Combine >35 hp n/a 2400 Threshing and cleaning 20,000 to 25,000 Harvesters Mini combine 15 hp n/a 2100 Harvesting and Threshing 18,000 To 20,000 Harvesters wheel type n/a 1274 Harvesting Dry land 18000 Harvesters Track Type n/a 8728 Harvesting in all Terrains 25000
  9. COMMON CUSTOM HIRING RATES Process Rate in US $ / ha Ploughing- 3 operations 120 – 140 Spraying weedicides 1 - 1.1/ Tank Power weeding 40 -50 Reaping 95- 115 Threshing Only 25 - 30 Combine Threshing 100 -120 Combine harvesting 200 -235 Transplanting 170
  10. Cost • Timeliness • Type of machine • Size of machine • Operator competence • Age of Machine • Operational losses • Man power required Quality • Brand make and performance of Machine • Accuracy of operation • Waste damage and impurities • Operator competence FACTORS AND VARIABLES CONSIDERED BY FARMERS FOR CUSTOM HIRING
  11. Delivery speed • Machine type and size • No of processes • Power of machine • Age of machine • Operator competency Reliability • The Machine effectiveness • Relationship with machine owner or agent • Machine make and age • Communication link • Operator competence SUSTAINABLE PERFORMANCE FACTORS FOR CUSTOM HIRING 2
  12. SUPPORTING POLICIES AND INFRA STRUCTURE FOR CUSTOM HIRING IN SRI LANKA • The duty free imported agricultural machines • Subsidized machines such as weeders and Transplanters in introduction of machines • Private and Government banks and finance companies facilitate soft loans • Profit earned in self-employment is mostly tax-free. • Efficient mobile communication system • Good road net work for movement of machines • Established sales service and Finance outlets through out the country
  13. SOCIAL AND ECONOMIC BENEFITS IN CUSTOM HIRING • Machine has become an attractive livelihood for youth • Lower level of commitment and lower cost to farmer • The smaller landholders using machines in their lands • Increased Water efficiency by timely farming • Healthy and happy farming families • Movement of extra labour to profitable areas
  14. CHALLENGES AND CONSTRAINTS FACED • Lack of Competence of machine operators and their soft skills reduce the effectiveness of custom hiring. • Financial entry barriers for new process such as transplanting and weeding drying and storage • Entry barriers to operators from other areas without the agent • Varying Quality due to poor machine efficiencies • Uncertainty of operational conditions of Machines • Educate on Agriculture machines and advantages of custom hiring
  15. RECOMMENDATIONS FOR SUSTAINABILITY • Governments should never get into Machine hiring business • Government must train and certify machine operators to facilitate custom hiring • Government should consider insurance schemes to secure customs hiring in bad weather. • All schools in countries dependent on Agriculture should teach entrepreneurship development in machine hiring business to attract youth.
  16. Melvin Samarasinghe Mechanical Engineer, Trainer, Consultant Agfour Engineering Services Immediate Past President Agmma Sri Lanka melvin@sltnet.lk +94714729480
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