Market Trends of India Agricultural Irrigation Machinery Industry
This section covers the major market trends shaping the India Agricultural Irrigation Machinery Market according to our research experts:
Rising Greenhouse Cultivation in the Country
In recent years, the cultivation of flowers and vegetables in greenhouses has emerged as a major alternative to overcome yield issues. As greenhouses ensure year-round production, farmers are showing greater interest in them. The greenhouses in the country are mostly equipped with micro-irrigation systems. Under the greenhouse segment, drip irrigation is the most dominant micro-irrigation system. The increase in the revenue from greenhouses also contributes to the growth of the market.
Over USD 36,210 million is planned to be invested in various irrigation projects announced under centrally sponsored schemes and programs. Technology in the irrigation sector has evolved significantly over the past 10 years with regard to construction equipment, water transfer techniques, and types of irrigation systems. Innovative technology-led irrigation systems such as solar-powered lift micro-irrigation are gaining prominence over conventional flooding methods of irrigation. Greater thrust is also being given to drip and sprinkler irrigation systems and efficient water-use mechanisms.
Major crops cultivated under greenhouses are leafy vegetables, capsicum, flowers, and tomatoes. Central and state governments in the country are granting subsidies for the construction of greenhouses and for installing micro-irrigation systems. For instance, in the 2021 budget, the Indian government set the target of covering 100 lakh hectares in five years under micro-irrigation. Similarly, in the year 2019-20, about 11 lakh farmers benefited from the adoption of drip and sprinkler irrigation. Thus, increasing intervention of several state governments by providing subsidies, coupled with rising product innovation of major players, is anticipated to drive the market further.
Maharashtra is Dominating the Market
Maharastra state dominates the Indian market for micro irrigation. The state government urged the central government to allocate more funds under the Pradhan Mantri Krishi Sinchai Yojana (PMKSY) to bring at least 50% of agricultural land under micro-irrigation over the next five years. It also requested the central government to promote micro-irrigation to crops beyond high, water-intensive sugarcane and bananas under the 'More Crop Per Drop' scheme. The financial burden under micro-irrigation was shared by the central and state governments in a ratio of 60:40 for the year 2020. For instance, the proposed expenditure for micro-irrigation in Maharashtra is INR 653.33 crore (USD 80 million), of which the Central government's share is INR 400 crore (USD 49 million) and the state's share is INR 253.33 crore (USD 31 million).
The advent of mechanization has made farmers dependent on various sources for irrigation. However, mechanization in agriculture has moved well past tractors, to encompass every aspect of the crop production cycle. Farm mechanization not only increases productivity and yield per hectare, but it also helps to reduce water consumption per farm. However, in the current agricultural scenario water scarcity has been a major challenge in India and is, thereby, a critical driver for the use of micro-irrigation machinery systems. India faces typical water issues, primarily due to population growth and lack of availability of quality water.
Fragmented land requires a controlled amount of quality water, to be equally distributed where the irrigation system proves to be fruitful. Incentives from the government in the form of increased budgetary allocations to the farmers, and reduction of basic customs duty for the irrigation machinery manufacturers played a vital role in driving the growth of the irrigation machinery market in India. Up to 60 per cent of water used for sugarcane, banana, okra, papaya, bittergourd and few other crops could be saved if a drip irrigation system is employed for cultivation. But only four States - Sikkim, Andhra Pradesh, Karnataka and Maharashtra - have more than half of the net cultivated farmlands under micro-irrigation. 27 States (including UTs) in India have less than 30 per cent micro-irrigation system out of which 23 have less than 15 per cent micro-irrigation.
