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Impact of Agro Machinery Service Centres on mechanisation of paddy cultivation in Kerala

By: Salini R Chandran.
Contributor(s): Molly Joseph (Guide).
Material type: materialTypeLabelBookPublisher: Vellanikkara Department of Rural Banking & Finance Management, College of Co-Operation, Banking & Management 2015Description: 158 pages.Subject(s): Department of Rural Banking & Finance ManagementDDC classification: 332 Online resources: Click here to access online Dissertation note: MSc Abstract: Agricultural operations essentially require labour as an inevitable input. But the availability and cost of agricultural labour is a major problem faced by the farmers of Kerala. The role of Agro Machinery Service Centres (AMSCs) in the mechanisation of farming operations is assuming importance in this scenario. Agro Machinery Service Centres are service providers where all agro machinery operation services with respect to crop production are rendered on contract basis. An Agro Machinery Service Centre should have all facilities to meet the critical need of the farmers and at the same time become a self-reliant and viable proposition. The study entitled “Impact of Agro Machinery Service Centres on mechanisation of paddy cultivation in Kerala” was conducted with the main objectives of assessing the extent of mechanisation among farmers, identifying the determinants of paddy mechanisation through Agro Machinery Service Centres (AMSCs), studying the impact of AMSCs on mechanisation paddy cultivation and examining the role of institutional credit in the mechanisation of paddy farms. One hundred and thirty five respondents from three Panchayats of Thrissur district viz., Avanoor, Kuzhoor and Pazhayannur and three AMSCs viz, Green Army, Sivasakthi and Parijatham were selected as samples through multistage sampling method. The sample farmers were categorised into two viz., users of AMSCs and non-users of AMSCs. Out of the total sample, 90 farmers are using the services of AMSCs and 45 are not using the services of AMSCs. The users are again grouped into 45 individual users and 45 group users /Padasekharams. Data were collected through pre-tested structured interview schedule. The major statistical tools used for the study were independent sample ttest, one way ANOVA, Post-hoc test, Chi-square test, Yates’ correction for continuity and indices such as mechanisation index, benefit index of AMSCs, service quality index of AMSCs and usage index of farm implements by farmers. The extent of mechanisation adopted by farmers is analysed based on the farm size of farmers, different crops cultivated by them, purposes of mechanisation, area of mechanised land holdings of the farmers, farm implements used and owned by the farmers and measurement of adoption of mechanisation by the farmers. Mechanisation of farm lands is confined to paddy cropped areas. It is found that 81.43 per cent of total land holdings of farmers are mechanised. The mechanised land holding is more for users of AMSCs (90.74 percent) than the non-users (62.80 percent). The major farm implements used by farmers consist of tractors, transplanters, harvesters and sprayers. Users of AMSCs mainly adopt mechanisation for the purposes of land preparation, transplanting and harvesting whereas non-users adopt mechanisation for the purpose of land preparation and harvesting. The major farm implement owned by both categories of farmers are sprayers .The usage index of mechanised implements worked out to be 89 per cent by the farmers. Mechanisation index is constructed as ratio of cost of use of machines and total cost of use of human labour, draught animals and machines to measure the extent of mechanisation among the farmers. The mechanisation index shows that the extent of mechanisation is more in the case of users than the non-users of AMSCs. The adoption rate of mechanisation is found to be 57.34 per cent for users and 30.72 per cent for non-users of AMSCs. The mechanisation index for usage of services of Agro Machinery Service Centres is done separately in order to understand the effect of using such services in replacing the overall labour costs incurred in farm operations and also to understand the contribution of services of AMSCs in overall mechanisation of paddy farming. The mechanisation index of farmers who use AMSC services is estimated at 30 per cent. . i.e., the cost incurred by non - users over and above this 30 per cent for transplantation can be saved, if they shift to mechanisation of transplantation. It is also found that the share of transplantation costs to total mechanisation costs of land preparation, transplantation and harvesting of users is nearly 51 per cent. This implies that, out of the total mechanisation costs, 51 per cent is contributed by AMSCs by the way of transplanting cost. The determinants of farm mechanisation through Agro Machinery Service Centres is analysed by examining the relationship between mechanisation index of farmers with variables such as education level, farm experience, cost of cultivation, production and income from paddy of farmers. Chi-square test and Yates’ correction factor for continuity was employed to study the relationship between these variables with mechanisation index. Among the above said variables, only cost of cultivation has significant relationship with the adoption of mechanisation by the user farmers and is a determinant of adoption of mechanisation through AMSCs by the user farmers. But in the case of non-users, none of the variables is a determinant of the adoption of mechanisation by the farmers. The evaluation of service quality of AMSCs shows that reduced cost of cultivation, availability of skilled labour force, and saving in time are the factors that encourage the adoption of mechanisation by farmers through AMSCs. The impact of AMSCs in paddy farming is measured by attempting a disaggregated analysis of different aspects of cost and production of rice. Mechanisation in paddy cultivation has resulted in labour displacement; AMSCs have served the purpose of labour saving in farm operations of transplanting. Average labour costs per acre of non-users are estimated as Rs. 37185 whereas that of users is estimated to be Rs. 29270. The highest difference in costs is found in the case of transplanting, where non – users have to spend Rs 2340/- per hectare more than the users of AMSCs. The usage of migrant labourers from the State of West Bengal for manual transplanting by the non-user panchayats reduced the difference between transplantation using machine and manual labour to Rs. 2340. Estimating the net effect of labour saving and machine hiring costs reveals that average cost of cultivation of users of AMSCs (Rs 41590/Ha) is less than that of non-users (Rs.48360/Ha). Increased usage of mechanisation (by way of usage of AMSC services) also show impact on production, wherein the average production of user farmers (6090 kg/Ha) was found to be higher than non-users (5025 kg/Ha). The users of AMSCs are enjoying two types of benefits from their service centres. One is economic benefits and the other one is operational benefits. Operational benefits include timeliness in farm operations, solution to labour scarcity and increased acreage of cultivation. The economic benefits deal with capital investment, farm income and sustainability of farming and motivation to continue farming in future. The economic benefits (92 per cent) have surpassed the operational benefits (88 per cent) since the indicator ‘increased acreage under cultivation’ has scored less. Hence, mechanisation through AMSCs has motivated all the user farmers to remain and continue in rice farming, but still has to go a long way to induce them to bring additional land under rice farming Institutional credit has a pivotal role in the agricultural development of the country, as one of the critical inputs for agriculture. It capitalises farmers to undertake new investments and adopt new technologies. A large number of institutional agencies like Co-operatives, Regional Rural Banks (RRBs), Scheduled Commercial Banks (SCBs), Non– Banking Financial Institutions (NBFIs), and Self Help Groups (SHGs) are involved in meeting the short and long term mechanisation needs of farmers. In the case of farmers and Agro Machinery Service Centres studied, loan for mechanisation is found to be availed by none. All the service centres are provided with agricultural implements by Grama Panchayats and Block Panchayat at free of cost. Only one farmer owned machinery (tractor) for agricultural operations. The farmers seek the help of Agro Machinery Service Centres and private agencies for their mechanisation needs. It is not economical for the farmers to own agricultural implements. Hence the role of institutional credit in mechanisation of paddy farming in the study area was found to be very limited. Even though KAU is not directly involved in the activities of Green Army, it is to the credit of the Agricultural Research Station, Mannuthy, of the University that its earnest efforts to find a solution to the agricultural labour shortage in the State, by way of training to a group of 18 farmers and farm workers of Wadakkanchery Block Panchayat has culminated in the formation of Green Army, which by its sincere efforts and the patronage of the Panchayat and PSCB has achieved State level acceptance and has become a model for other Agro Machinery Service Centres in the State. The introduction of AMSCs is an apt solution for severe labour shortage faced by farmers in paddy farming. They facilitate timely availability of machine labour and timeliness in farm operations. Hence, transplanting service of AMSCs, resulted in reduced cost of cultivation, increased production and farm income of farmers. Mechanisation through AMSCs has motivated all the user farmers to remain and continue in rice farming, but still has to go a long way to induce them to bring additional land under rice farming.
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Reference Book 332 SAL/IM (Browse shelf) Not For Loan 173823

MSc

Agricultural operations essentially require labour as an inevitable input. But
the availability and cost of agricultural labour is a major problem faced by the
farmers of Kerala. The role of Agro Machinery Service Centres (AMSCs) in the
mechanisation of farming operations is assuming importance in this scenario. Agro
Machinery Service Centres are service providers where all agro machinery operation
services with respect to crop production are rendered on contract basis. An Agro
Machinery Service Centre should have all facilities to meet the critical need of the
farmers and at the same time become a self-reliant and viable proposition.
The study entitled “Impact of Agro Machinery Service Centres on
mechanisation of paddy cultivation in Kerala” was conducted with the main
objectives of assessing the extent of mechanisation among farmers, identifying the
determinants of paddy mechanisation through Agro Machinery Service Centres
(AMSCs), studying the impact of AMSCs on mechanisation paddy cultivation and
examining the role of institutional credit in the mechanisation of paddy farms.
One hundred and thirty five respondents from three Panchayats of Thrissur
district viz., Avanoor, Kuzhoor and Pazhayannur and three AMSCs viz, Green Army,
Sivasakthi and Parijatham were selected as samples through multistage sampling
method. The sample farmers were categorised into two viz., users of AMSCs and
non-users of AMSCs. Out of the total sample, 90 farmers are using the services of
AMSCs and 45 are not using the services of AMSCs. The users are again grouped
into 45 individual users and 45 group users /Padasekharams. Data were collected
through pre-tested structured interview schedule.
The major statistical tools used for the study were independent sample ttest,
one way ANOVA, Post-hoc test, Chi-square test, Yates’ correction for
continuity and indices such as mechanisation index, benefit index of AMSCs,
service quality index of AMSCs and usage index of farm implements by farmers.
The extent of mechanisation adopted by farmers is analysed based on the
farm size of farmers, different crops cultivated by them, purposes of
mechanisation, area of mechanised land holdings of the farmers, farm implements
used and owned by the farmers and measurement of adoption of mechanisation by
the farmers. Mechanisation of farm lands is confined to paddy cropped areas. It is
found that 81.43 per cent of total land holdings of farmers are mechanised. The
mechanised land holding is more for users of AMSCs (90.74 percent) than the
non-users (62.80 percent). The major farm implements used by farmers consist of
tractors, transplanters, harvesters and sprayers. Users of AMSCs mainly adopt
mechanisation for the purposes of land preparation, transplanting and harvesting
whereas non-users adopt mechanisation for the purpose of land preparation and
harvesting. The major farm implement owned by both categories of farmers are
sprayers .The usage index of mechanised implements worked out to be 89 per cent
by the farmers.
Mechanisation index is constructed as ratio of cost of use of machines and
total cost of use of human labour, draught animals and machines to measure the
extent of mechanisation among the farmers. The mechanisation index shows that
the extent of mechanisation is more in the case of users than the non-users of
AMSCs. The adoption rate of mechanisation is found to be 57.34 per cent for
users and 30.72 per cent for non-users of AMSCs.
The mechanisation index for usage of services of Agro Machinery Service
Centres is done separately in order to understand the effect of using such services
in replacing the overall labour costs incurred in farm operations and also to
understand the contribution of services of AMSCs in overall mechanisation of
paddy farming. The mechanisation index of farmers who use AMSC services is
estimated at 30 per cent. . i.e., the cost incurred by non - users over and above this
30 per cent for transplantation can be saved, if they shift to mechanisation of
transplantation. It is also found that the share of transplantation costs to total
mechanisation costs of land preparation, transplantation and harvesting of users is
nearly 51 per cent. This implies that, out of the total mechanisation costs, 51 per
cent is contributed by AMSCs by the way of transplanting cost.
The determinants of farm mechanisation through Agro Machinery
Service Centres is analysed by examining the relationship between mechanisation
index of farmers with variables such as education level, farm experience, cost of
cultivation, production and income from paddy of farmers. Chi-square test and
Yates’ correction factor for continuity was employed to study the relationship
between these variables with mechanisation index. Among the above said
variables, only cost of cultivation has significant relationship with the adoption of
mechanisation by the user farmers and is a determinant of adoption of
mechanisation through AMSCs by the user farmers. But in the case of non-users,
none of the variables is a determinant of the adoption of mechanisation by the
farmers.
The evaluation of service quality of AMSCs shows that reduced cost of
cultivation, availability of skilled labour force, and saving in time are the factors
that encourage the adoption of mechanisation by farmers through AMSCs.
The impact of AMSCs in paddy farming is measured by attempting a
disaggregated analysis of different aspects of cost and production of rice.
Mechanisation in paddy cultivation has resulted in labour displacement; AMSCs
have served the purpose of labour saving in farm operations of transplanting.
Average labour costs per acre of non-users are estimated as Rs. 37185 whereas
that of users is estimated to be Rs. 29270. The highest difference in costs is found
in the case of transplanting, where non – users have to spend Rs 2340/- per
hectare more than the users of AMSCs. The usage of migrant labourers from the
State of West Bengal for manual transplanting by the non-user panchayats
reduced the difference between transplantation using machine and manual labour
to Rs. 2340. Estimating the net effect of labour saving and machine hiring costs
reveals that average cost of cultivation of users of AMSCs (Rs 41590/Ha) is less
than that of non-users (Rs.48360/Ha). Increased usage of mechanisation (by way
of usage of AMSC services) also show impact on production, wherein the average
production of user farmers (6090 kg/Ha) was found to be higher than non-users
(5025 kg/Ha).
The users of AMSCs are enjoying two types of benefits from their service
centres. One is economic benefits and the other one is operational benefits.
Operational benefits include timeliness in farm operations, solution to labour
scarcity and increased acreage of cultivation. The economic benefits deal with
capital investment, farm income and sustainability of farming and motivation to
continue farming in future. The economic benefits (92 per cent) have surpassed
the operational benefits (88 per cent) since the indicator ‘increased acreage under
cultivation’ has scored less. Hence, mechanisation through AMSCs has motivated
all the user farmers to remain and continue in rice farming, but still has to go a
long way to induce them to bring additional land under rice farming
Institutional credit has a pivotal role in the agricultural development of
the country, as one of the critical inputs for agriculture. It capitalises farmers to
undertake new investments and adopt new technologies. A large number of
institutional agencies like Co-operatives, Regional Rural Banks (RRBs),
Scheduled Commercial Banks (SCBs), Non– Banking Financial Institutions
(NBFIs), and Self Help Groups (SHGs) are involved in meeting the short and long
term mechanisation needs of farmers. In the case of farmers and Agro Machinery
Service Centres studied, loan for mechanisation is found to be availed by none.
All the service centres are provided with agricultural implements by Grama
Panchayats and Block Panchayat at free of cost. Only one farmer owned
machinery (tractor) for agricultural operations. The farmers seek the help of Agro
Machinery Service Centres and private agencies for their mechanisation needs. It
is not economical for the farmers to own agricultural implements. Hence the role
of institutional credit in mechanisation of paddy farming in the study area was
found to be very limited.
Even though KAU is not directly involved in the activities of Green
Army, it is to the credit of the Agricultural Research Station, Mannuthy, of the
University that its earnest efforts to find a solution to the agricultural labour
shortage in the State, by way of training to a group of 18 farmers and farm
workers of Wadakkanchery Block Panchayat has culminated in the formation of
Green Army, which by its sincere efforts and the patronage of the Panchayat and
PSCB has achieved State level acceptance and has become a model for other Agro
Machinery Service Centres in the State.
The introduction of AMSCs is an apt solution for severe labour shortage
faced by farmers in paddy farming. They facilitate timely availability of machine
labour and timeliness in farm operations. Hence, transplanting service of AMSCs,
resulted in reduced cost of cultivation, increased production and farm income of
farmers. Mechanisation through AMSCs has motivated all the user farmers to
remain and continue in rice farming, but still has to go a long way to induce them
to bring additional land under rice farming.

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