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Sunday, 8 December 2013

Mechanisation of Agriculture: Insufficient understanding of its Impact?

An often but extremely interesting facet of rural socio-economic life (at least in AP) is the increased mechanisation of agriculture. A clearly discernible, albeit recent appearance in agricutlure is the mechanical harvesters. They increasingly dot the rural landscape. Since May 2012,when we first pointed out this trend, their use has increased exponentially. Each harvester costs Rs.1.4 million to Rs.1.6 million with a prospective owner investing about Rs.500,000 to Rs.600,000.

The rapid use mechanical harvesters has very interesting consequences, most of which do not seem to be well understood. Some of these issues are highlighted below:

Firstly, A number of these harvesters are operated in a manner similar to the lorry business. 

Secondly (most important but often overlooked), it reduces the time cycle for the farmer - they now facilitate completion of harvesting about one month earlier than in the past; 

Thirdly (at least in AP) there is an increased adoption of the harvesters in dry regions of the State rather than in the more irrigated (and more prosperous regions). In these dry regions, labour costs are lower but, there is greater investment in mechanised harvester - mostly to operate as a business rather than for own use. 

Fourthly, their use saves substantail amount of money to the land owner: they harvest about one acre in one hour and the cost varies from Rs.1200 to Rs.2500 (depending on the demand). 

And, Lastly, Needless to say, nobody seems to knows its impact on the rural labour markets, other than the conventional stereotype that mechnaisation leads to job losses. 

Time for a rethink?

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