Melvin Samarasinghe, Director, Agfour Engineering Services Presented at the ReSAKSS-Asia conference “Agriculture and Rural Transformation in Asia: Past Experiences and Future Opportunities”. An international conference jointly organized by ReSAKSS-Asia, IFPRI, TDRI, and TVSEP project of Leibniz Universit Hannover with support from USAID and Deutsche Forschungsgemeinschaft (DFG) at the Dusit Thani Hotel, Bangkok, Thailand December 12–14, 2017.

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