1) The document discusses custom hiring services of farm machinery in India. It provides background on farm mechanization and outlines government schemes to promote it. 2) Custom hiring centers allow farmers to access machinery without large capital investments by paying a fee. They provide various benefits but individual ownership is still preferred in some cases. 3) Research studies have shown that custom hiring can increase farmer incomes and productivity compared to manual labor while reducing costs compared to individual ownership. However, some custom hiring centers are more profitable than others.

1. 1

2. 2
Seminar-1
On
Custom Hiring Services
of Farm Machinery in
India

3. • Introduction about farm mechanization
• Indian scenario
• Government schemes
• Introduction about Custom Hiring
• Custom hiring situation in India
• Custom Hiring centers
• Need for custom hiring
• Custom Hiring Centers in Karnataka
• Research studies
• Conclusion
3

4. 4
INTRODUCTION

5. 5
• Farm Mechanization is the process of developing machines
and substituting this machine power for human and animal
power in agriculture and allied production practices.
• According to FAO(2002), Agricultural Mechanization is
the process of improving farm labor productivity through the
use of agricultural machinery, implements and tools.

6. 6

7. • Savings in seeds
15-20%
• Savings in fertilizers
15-20%
• Increase in cropping intensity
5-20%
• Savings in time
20-30%
• Reduction in manual labour
20-30%
• Overall increase in farm
productivity
10-15%
7
Estimated contributions from farm
mechanization
Source: Agricultural Mechanization Strategies in India(2013), CIAE

8. Table1: Evolution of Indian Agriculture Machinery
Processes Traditional Practice Current Practice
Land Development
Tillage
Seedbed
preparation
Plough
Blade Harrow
Tractors
Mould Board Plough
Power Tiller
Sowing &Planting Dibblers
Seed Drill
Zero Till
Seed-cum-Fertilizer Drill
Weeding
Hand Hoes
Animal driven Weeding Tools Power Weeder
Plant Protection Dusters Power Sprayer
Harvesting &
Threshing
Sickle
Animal Trampling
Self-Propelled Harvesters
Tractor mounted Harvesters
Threshers
8
Source: Anonymous, 2010

9. 9
0
10
20
30
40
50
60
70
80
90
100
Corn Cotton Sugarcane Wheat Paddy
Land preparation (%) Planting (%) Crop Care (%) Harvesting (%)
Source: Goyle, 2013
Indian Scenario
Figure 3: Share of usage of machinery in different stages of crop
production

10. 2001-Macro Management
of Agriculture
2007- Rashtriya Krishi
Vikas Yojana
2010- National Mission on
Agricultural Mechanization
2014- Sub-Mission on Agricultural
Mechanization (SMAM)
10
Govt. schemes to promote farm
mechanization

11. Small and Marginal Farmers
Reaching the unreached
Custom Hiring Services
Creating ownership
Capacity/Awareness building
11
SMAM: Focus Areas
Source: SMAM Guidelines

12. 12
Custom hiring allows a
farmer to gain short-
term control of
machinery without
investing a large amount
of capital.

13. Early decades of 19th century
Steam thresher
Agro Industries Corporation (AIC) mid-1960.
NATP and NAIP(1990)
NICRA – KVKs(2010)
13
Custom Hiring Centers

14. Custom Hiring Service Centers in
Karnataka
14
July, 2014
Shri Kshethra
Dharmasthala Rural
Development Project
Indian Society of
Agribusiness Professionals

15. 15
Source: Department of Agriculture, Karnataka
Sl.
No
District No. of
CHSCs
Sl.
No
Districts No. of
CHSCs
1 Bengaluru (U) 3 16 Dakshina
Kannada
5
2 Bengaluru (R) 4 17 Udupi 3
3 Ramanagar 4 18 Dharwad 5
4 Kolar 5 19 Gadag 5
5 Chikkaballapur 6 20 Haveri 7
6 Tumakuru 11 21 Uttara Kannada 11
7 Shivamogga 7 22 Belagavi 13
8 Chithradurga 7 23 Vijayapura 5
9 Davangere 6 24 Bagalkot 7
10 Mysuru 7 25 Raichur 7
11 Chamarajnagar 4 26 Koppala 4
12 Mandya 7 27 Ballary 7
13 Kodagu 3 28 Kalaburgi 8
14 Hassan 8 29 Yadgiri 3
15 Chikkamagaluru 8 30 Bidar 6
Table 3: Custom hiring service centers in different districts

16. • To overcome the non availability of farm laborers
problem.
*
• To increase the production and productivity of the
farmers
*
• To carryout agricultural activities in all the
conditions
*
• To provide farm machineries and implements to
farmers at reasonable rates
*
• To attract the youth towards agriculture with
modern machineries.
*
16
Objectives of Custom Hiring Centers

17. 17
Growing scarcity of labor in agri- food
system
Increasing labor cost
New technologies are economically and
technically out of reach from small holders
Climate change has shortened the window
of completing critical agricultural
operations requiring more use of
machineries to ensure timeliness

18. 18
Increased accessibility
Faster uptake of new technologies and
machines
Specialized agricultural operation
Expand and intensify production

19. Increases smallholders income
Full use of machine’s service life
Facilitates diversification of production
Custom Hiring makes cost estimates more
practicable
19

20. 20
Individual Ownership v/s Custom Hiring

21. tractor
Rotovator Laser guided leveller
Soil Pulveriser Automatic Nursery
seedling machine
Paddy weeder(2 Row)
Paddy Transplanter(8 Row)

22. Drum seeder- Fiber body Conoweeder
Power operated Paddy weeder
Direct Sowing Drum seeder Package

23. Package of machinery under Sugarcane
Sugar Cane Harvester
Sugar cane harvester with infield
tractor for loading the harvested
cane
Sugarcane planter
18.5 hp mini
tractor with
rotovator

24. Package of Machinery being supplied under Groundnut package
Tractor with Rotovator Groundnut seed drill(gorru) Groundnut planter
Groundnut digger cum shaker
Groundnut thresher

25. Knapsack mist blower Power sprayer
Aeroblast Sprayer Self propelled Power weeder
Power tiller sweep cultivator
Spraying and Intercultivation machinery

26. Advantages of custom hiring
26
The machine comes with
an operator.
No long-term capital
investment
Pays only for the number of
acres or number of hours
used.
Good condition

27. Disadvantages
27
Quality of the
job performed
Inconvenience
when required

28. Social and Economic Benefits
Social benefits
28
Increase
household
income
Improve the
quality of life
Increase a
family’s
food
security

29. • Increasing the efficiency of labor
• Reducing costs
• Increasing the area cultivated
• Undertaking more timely production
• Improving the quality of cultivation
• Increasing yields
• Adopting crop diversification
• Reducing harvest and post-harvest losses
29
Economic Benefits

30. Staffs in CHSCs
30
Manager
Field
supervisor
Clerk
1 Driver
(permanent )
3-4 causal
labor

31. Pahani
Ration
card
Documents
needed for
the farmers
for
registration
31
Documents needed for registration

32. Specialties of Custom Hiring Centers
32
Modern
machineries
Expert
drivers and
operators
Quality
service at
all the
situations
Pre-
booking
service.

33. Pre-booking details
33
Payment : 20 per
cent of the amount
should be paid
before only and
remaining 80 per
cent amount before
taking the machinery
If the time of using
machineries or
implements is less or
more than booked,
the farmer may
withdraw or pay the
amount

34. Pre- booking cancellation details
Cancelling time Cancellation fee Remarks
72 hours before service - 100% cash back
48 hours before service 25% of booking amount 75% cash back
24 hours before service 50% of booking amount 50% cash back
On the day of service 100% of booking
amount
No payment
34

35. Registers maintained in CHSC
35
Farmers’
registration
register
Machinery
stock register
Expenses
register
Fuel stock
register
Machinery
repairs
register

36. Transparency in Custom Hiring Centers
• Providing machineries and implements for only pre-
booked farmers when there is more demand with 20%
of the amount.
• Unique Identification Number (UIN)
• Visiting farmers field
• Taking feedback.
• Fixing the hiring charges
• Creating awareness
• Inspection of machineries
36

37. Terms and conditions of Custom Hiring
Centers
• Preference will be given for the farmers who comes
first.
• The responsibility of the driverless machineries
should be taken by the farmers and it should be
returned carefully after use.
• There will be no discount and bargaining on the rates
fixed for the machineries.
• The machineries and implements should be used only
for the purpose for which it is hired.
37

38. Fixing of the Hiring Charges:
Districts Implements committee
• Joint Director of Agriculture
• Leading farm machinery manufacturer in the district
• Assistant Director of Agriculture
• Two progressive farmer/Krishi prahsasthi awardee
• CHSC representative as members
• Fuel prices, repairs, salary of the drivers, wears and
tears and other expenses.
38

39. Sl. No. Name of the Machinery In numbers Hiring rate
1 Multi crop thresher(Rs./quintal) 1 50
2 Hand sprayer(Rs./Day) 1 100
3 Power sprayer(Rs./Day) 2 300
4 Power tiller (Rs. /hr.) 2 250
5 Harvester/reaper (Rs. /hr.) 2 700
6 Cultivator(Rs./Day) 2 500
7 Rotary (36 blades) (Rs. /hr.) 3 700
8 Hole digger(Rs./dig) 1 18
9 Tractor operated seed drill(Rs./Day) 1 350
10 Tractor (Rs. /8 hr.) 4 1500
11 Disc harrow (Rs. /hr.) 1 1000
12 Mini Tractor (Rs. /8 hr.) 2 800
13 Battery sprayer (Rs. /8 hr.) 2 100
14 Rotary weeder (Rs/hr.) 2 200
15 Leveler(Rs./Day) 1 350
16 Rotavator(Rs.hr.) 2 700
17 MB plough (Rs. /hr.) 2 600
39

40. RESEARCH STUDIES

41. Economic Impact of Custom Hiring Services of
Machinery on Farm Economy in Punjab
Dharvinder Singh et al. (2011)
• To examine the economic viability of custom hiring
services of farm machinery and implements by the
Primary Agricultural Cooperative Societies.
• Sample size: 64
• Sample area: Punjab
41

42. Table 1: Returns over variable cost 2011-12
Particulars Machine owning
farms
Custom Hire-in
farms
Difference (
Custom Hire-in
farms over
machine owning
farms)
Gross returns 143879.54 136062.68 -7816.81
Return over
variable cost
96353.39 86511.86 -9841.53
Net returns 1038.22 10134.01 9095.79
42

43. Accessibility of farm machinery services - CHSCs for small
and marginal farmers
- Hiremath et al. (2015)
Objective :
• To assess the performances of CHSCs
Methodology :
• Sample size – 10 CHSCs
• Sample area - Raichur
43

44. Table 1 Utilization of farm machineries/ equipments in CHSC’s in
Raichur district, Karnataka
Sl. No. Supplied farm machineries /
equipments
Utilization in CHSCs (N=8)
Number Percent
1 Tractor 8 100.00
2 Rotovator 5 62.50
3 Multi-crop thresher 1 12.50
4 MB pough 5 62.50
5 Cultivator 2 25.00
6 Leveller blade 3 37.50
7 Blade harrow 4 50.00
8 Seed cum Fertilizer Drill 2 25.00
9 Knapsack sprayer 2 25.00
10 Power weeder 0 0.00
11 Winnowing Fan 0 0.00
12 Electronic balance 0 0.00
44

45. Table 2. Custom Hiring rates charged for farm machineries by
Private and CHSCs in Raichur district, Karnataka
(N =8)
45
Sl no Farm machineries/equipments
with tractor
Hiring charges
Private
individuals
CHSC
1 Rotovator 650 600
2 Multi-crop thresher(Rs.per qtl) 20 15
3 MB plough(Rs/hr 550 500
4 Cultivator (Rs/hr) 450 450
5 Leveller blade(Rs/hr) 500 400
6 Blade harrow(Rs/hr) 450 400
7 Seed cum fertilizer drill(Rs/hr) 700 650
8 Knapsack sprayer(Rs.rent per
day)
100 50

46. Table 3. Costs and Returns of Custom Hiring services by
CHSCs in Raichur district, Karnataka during 2012-13
Particulars Amount (Rs.)
1 Average Number of hours worked
(hrs)
111
2 Average operational cost incurred 28,255
3 Average fixed cost 25,356
4 Total cost 53,611
5 Gross returns 62,433
6 Net returns 8,822
7 Returns per month 735
(n =8)
46

47. Table 4. Performance of CHSCs in Raichur
district, Karnataka based on net returns
Sl. No Particulars Per cent of CHSCs
1 High Performing CHSCs (Net
returns > Rs. 54,500)
25
2 Medium Performing CHSCs (Net
returns < Rs.20,000)
25
3 Low Performing CHSCs
(Negative net returns)
50
47

48. Custom hiring of farm machinery in Punjab :
Impact and Policies
Sukhpal Singh et al.(2013)
• To document the practice of custom-hiring of tractor in
agriculture and its impact on employment of the farmers of
the Punjab
• Sample size -120
• Sample area - Punjab
48

49. Table 1: Employment on selected farms in crop production in
Punjab (hours/annum/acre)
Farm category FL PL CL TE
With owned tractor
Marginal NA
Small 211.30 0.00 119.30 330.6
Semi- medium 145.76 20.36 64.98 231.1
Medium 111.20 26.60 97.41 235.21
Large 79.86 37.16 112.42 229.44
Sub-total 109.87 28.66 96.31 234.84
With custom hired
tractor
Marginal 182.29 0.00 104.88 287.17
Small 137.80 0.00 79.74 217.54
Semi- medium 79.38 28.36 116.50 224.24
Medium 58.75 0.00 41.25 100
Large NA
Sub-total 112.29 11.67 94.95 218.91 49

50. Table :2 Constraints and suggestion regarding
custom hiring farmers (N=40)
Particulars No %
High cost of custom hiring services 38 95.00
Lack of timely availability of tractor services 29 72.50
Inadequate availability of tractor services 22 55.00
Owning tractor-a social status 19 47.50
Develop cooperative custom hiring machinery service
centres
39 97.50
Reduce costs of custom hiring services 38 95.00
Timely availability of machinery 30 75.00
More awareness for hiring in machinery 18 45.00
Govt. support for fixing rates , subsidising fuels and
lubricants etc
15 37.50
50

52. Farm Mechanization: Everywhere
Tillage &
seedbed
Preparation
Sowing/
Planting
Fertiliser
Application
Irrigation Harvesting
Post
Harvesting
Inter Cultivation
Plant Protection
Mechanized Solutions for whole chain
Mechanisation is clearly the answer to key performance parameter
at every stage of cropping cycle

54. Advantages of farm mechanization
• Improves utilization efficiency of inputs such as seeds,
chemicals , fertilizers and energy.
• Ensures timeliness of farm operations leading to higher
productivity and cropping intensity
• Reduce cost of production and increases agricultural income
• Reduces drudgery and improves safety in operation of farm
machinery.
54

55. Problems in farm mechanization
 Small size and scattered land holdings
 Lack of suitable machinery for Indian farming conditions
 Financial inability of the small farmers
 Lack of proper knowledge about farm machineries
 Lack of repair and replacement facilities especially in the
remote rural areas.
 Limited availability of sale outlets.
 Lack of accessibility for procurement, repair and
maintenance.
Source: Mechanization of agriculture – Indian scenario,
CIAE
55

56. SWOT analysis of Agricultural Mechanization in India
STRENGTHS
• Large infrastructure of over 20,000 manufacturers in small scale
industry
• Vast network of academic and R&D institutions including
AICRPs
• Trained manpower for R&D in agricultural engineering
• Over 100 cooperating centers of AICRPs in the area of
agricultural engineering
• Computer Aided Design adopted by the institutes for high pace
of R&D. Source: Agricultural Mechanization Strategies in India, 2013

57. WEAKNESSES
• Unreliable after sales service of agricultural equipment
• Poor TOT (agricultural engineering technologies) through
state departments
• Poor liaison with industries for R&D and commercialization
• Non effective feedback system
• Non systematic marketing of agricultural equipment.
57
Source: Agricultural Mechanization Strategies in India, 2013

58. OPPORTUNITIES
• Entrepreneurship development for custom hiring of farm
machinery and agro-processing equipment
• Post harvest loss reduction and value addition at the production
catchments through rural level agro-processing centers
• Opportunity to increase micro-irrigation in irrigated area.
58
Source: Agricultural Mechanization Strategies in India, 2013

59. THREATS
• Low profitability in agricultural enterprises due to subsistence
farming
• Migration of farmers from agriculture
• Fragmentation and continuous reduction of operational
holdings
• Slow pace of R&D and commercialization
59
Source: Agricultural Mechanization Strategies in India, 2013