Small and medium enterprises (SMEs) manufacturing farm equipment in north India are happy over the rising demand for the product in the Indian market, reports Business Standard.
Hopes are high among these SMEs for an anticipated large-scale farm mechanization in India, which will give rise to a market of over four thousand crores a year, not including tractors.
There are more than 400 SMEs in North India, engaged in the production of farm equipment – some under their own name while some for established market players. This includes SMEs from Chandigarh, Punjab, Haryana and Himachal Pradesh.
These SMEs supply farm equipment not only to the domestic market, but also to countries like Sri Lanka, Nepal, Iran, Iraq, and parts of South Africa.
Shortage of labour, subsidies from the Centre and state governments as well as easy availability of finance from banks have given an impetus to this sector, which is growing at the rate of 20-25 percent per year.
Moreover, the Centre as well as the state governments have undertaken vigorous promotion of the concept of farm mechanization.
Also, SMEs in North India are producing farm mechanization equipment of high quality at low cost and with trouble-free maintenance, which has considerably contributed to the rise in demand.