Market Trends of India Combine Harvester Industry
High Cost of Farm Labor
Agriculture is a major source of livelihood for a large group of the population. As per the Indian Economic Survey 2022 -23, the agriculture sector employs nearly 45.76% of the Indian workforce. The rise in urbanization trends observed in the country is a result of the expanding population. According to the World Bank data, the degree of urbanization increased from 34.9% to 36.4% from 2020 to 2023. This resulted in the migration of rural households to the nearby cities, leading to the scarcity of farm labor in the country. For instance, the workforce employed in agriculture dropped from 44.3% to 42.9% from 2020 to 2022, as per the World Bank data.
Likewise, the scarcity of farm labor also increased wage rates, which increased the overall production costs of the farmers. As per the Government of India statistics, the annual average daily wage rate for female field (Agriculture) labor, at all India levels, has reported at ₹ 328.51 (USD 4.0) in 2022, registering an increase of 8.32% over the previous year. Likewise, in the case of male field (agriculture) labor, the daily wage rate at all India levels was reported at ₹ 394.52 (USD 4.8) in 2022, registering an increase of 8.55 percent over the previous year. This resulted in a restrain in employing them in farms, favoring the adoption of combine harvesters by the farmers in the country.
The agricultural industry of the country heavily relies on manual labor, and the decreasing workforce in agriculture has led to major challenges in performing farming operations such as harvesting. As a solution to this problem, the usage of advanced harvesting machinery has become increasingly popular for performing these agricultural operations effectively and efficiently.
Rising Grain Cultivation in India Fuels Demand for Self-Propelled Combine Harvesters
In India, cereals play a pivotal role in the culinary landscape, positioning the nation as a leading producer and consumer of these staples. As the consumption of cereal crops rises, so does the need for expanded cultivation. This trend is evident, with harvested areas for cereals and grains on the upswing. For instance, according to FAOSTAT, the area harvested under cereals increased from 95.1 million hectares in 2019 to 99.6 million hectares in 2022. Given that combines, especially self-propelled ones, are predominantly utilized for cereals, this uptick in cultivation directly boosts the demand for such equipment, propelling the market growth.
Equipped with a robust engine, self-propelled combine harvesters excel in the fields, ensuring efficient harvesting and heightened productivity. This boost in productivity is a key driver for the segment's expansion. Predominantly, these harvesters find their application in Northern, Western, and Central India, catering mainly to rice, wheat, and other seasonal crops. Moreover, the lucrative custom hiring of these harvesters by large farmers, especially in major rice-wheat regions like Punjab and Haryana, has led to a surge in adoption among other farmers.
In response to the expanding areas dedicated to grain crops, manufacturers are rolling out specialized combine harvester products tailored for these crops. A case in point is Swaraj Division, a Mahindra and Mahindra Ltd subsidiary, which unveiled its Gen2 8100 EX self-propelled combine harvester in October 2021. This model aims to enhance productivity and performance for paddy farmers, ensuring optimal grain yield across extensive acreage.
