Agri equipment industry in 2022: Many challenges and hope for the future

Agri equipment industry in 2022: Many challenges and hope for the future
Agriculture and its related sectors contributed 16 percent to India's GDP in 2019. Therefore, a stronger push towards mechanisation and supporting agri machinery market in 2022 can be expected, Ravindra Agrawal, MD, KisanKraft writes…

The agriculture sector in India is one of the most crucial sectors which not just support the economy but also has a strong traditional value attached to it. The sector depends on the supply of raw materials and then selling the harvested crops. Both sides were impacted in 2021 due to various disruptions. Agri equipment plays a crucial role in the agriculture sector and has been getting a lot of focus from farmers, entrepreneurs, and the government.

In 2021, the farm machinery manufacturing sector faced challenges due availability and pricing of raw material and labour shortages. Another factor was the reduction in demand from farmers due to pandemic related uncertainty in executing agricultural operations and finally be able to harvest and sell the produce.

However, these disruptions were temporary, and people are coming up with ways to fight this unique challenge. Industry and the government are continually investing in the development of new technologies, products, and management systems.

KisanKraft built a new factory during the two years of the coronavirus pandemic and has become the first company to manufacture inter-cultivators in India. In addition to domestic markets, it is attracted interest from export markets. KisanKraft is going to continue to invest in developing and manufacturing more products in India.

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Many companies, including KisanKraft, are developing internet-based solutions for farmers to fill the knowledge gap among the farmers, reduce supply chain-related issues, facilitate the availability of inputs and agri equipment and so on. KisanKraft has pioneered a farmer-to-farmer rental to support farmers.

Several companies and government institutes are developing battery-operated tractors, drone-based solutions for pest control, satellite-based solution for irrigation, disease, and crop management.

According to Planet Market Reports, the Indian agricultural machinery market is estimated to reach INR 901.41 billion by 2024, growing at a CAGR of 10.70 per cent from 2019 to 2024. The Indian agricultural machinery market was valued at INR 498.04 billion (USD 6.5 billion) in 2018, however, it has been severely hit by the Covid-19 pandemic. India has an agrarian economy, with agriculture providing a living for more than half of the population. Agriculture and its related sectors contributed 16 per cent of India’s gross domestic product (GDP) in 2019. Therefore, we can expect a stronger push towards mechanisation and supporting the agricultural machinery market in the year 2022.

(Ravindra Agrawal is the Managing Director of KisanKraft. Views expressed in the article are the author’s own. Agriculture Post doesn’t assume any responsibility or liability for the same.)

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About Ravindra Agrawal

Ravindra Agrawal is the Managing Director of KisanKraft. KisanKraft is a manufacturer, designer, importer and distributor of affordable farm equipment suited to the needs of small and marginal farmers.

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