Promote mechanization in agriculture: RBI
Recently, the Reserve Bank of India (RBI) has released a report according to which it has been said to emphasize the need for product innovation and availability of retail finance for small agricultural machinery to promote mechanization in agriculture.
- According to this report, the spread of agricultural mechanization in India has increased in the last few years. It is currently estimated at 40-45 per cent.
- But it is much less than other developed economies and BRICS countries. For example, 95 percent mechanization is done in America, 75 percent in Brazil and 48 percent in China.
- It is noteworthy that there is very little use of other machines and more use of tractors.
- According to the RBI report, agricultural mechanization can increase agricultural productivity by up to 30 percent. Also, the input cost can be reduced by up to 20 percent.
- Additionally, it also reduces the time required to complete the agricultural operations. This makes agricultural labor very easy.
Suggestions for increasing the use of machines in agriculture
- Product innovation should be adopted to provide suitable, India friendly and affordable small farm machinery for small farmers. The reason for this is that about 70 percent of the farmers in India are small and marginal farmers.
- Retail loans should be provided to small and marginal farmers, so that they can purchase small agricultural machinery (not tractors). This loan should be provided through specific targets given by NABARD to the banks.
- To promote small farm equipment other than tractors, the target of giving priority sector credit should be set.
- In order to increase access to “Agriculture Mechanization” of small and marginal farmers, the Government is running a Sub-Mission on Agricultural Mechanization. It is also being started in those areas where the availability of electricity in the fields is very less.
Source – The Hindu
