Growing Demand for Farm Tractor Rental Services in India: Key Findings and Developments

The demand for farm equipment rental services is growing as a result of the high cost of new farm equipment purchases and the related maintenance services. By the use of rental services, farmers are able to benefit by avoiding the expense of maintaining farm equipment. Owing to the high cost of purchasing new farm tractors and the associated maintenance services over the past few years, we have observed an increase in the demand for farm rental services. Additionally, with the rental service farmers can save money by renting tractors instead of buying and maintaining their own farm tractors. Crops can be harvested on time by farmers who hire farm tractors rather than investing a sizable sum of money in pricey farm tractors.

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The number of tractors owners in India is declining continuously across the nation, this highlights that the targeted market is high and the farm tractor rental market is having immense potential to grow. The government has also been working on strategies to increase farm output and, as a result, double the amount of money farmers take home. A steady increase in output can make farming more lucrative. It is important to emphasise the tractor section's crucial contribution to agricultural modernization and rising production.

Despite the fact that agriculture industry is one of the core industries in India, farmers are still uneducated and more than half of the farmers still live below the poverty line, owing to this fact and according to our research the majority of farmers who rent tractors are those who already own one because they can afford the rent. And the main factor they rent a tractor is to reduce the expense of maintenance and to stay current with the rapidly evolving technologies; as a new technology enters the tractor sector every two to three years, owning a tractor would be a loss for them.

► Impact of COVID-19 on United States Warehouse Automation Market:-
The COVID-19 outbreak was seen as a market opportunity; skilled laborers returned to their hometowns and began farming on their properties. To assist farmers in such a precarious situation, players like TAFE gave away free tractors to the farmers, which persuaded small and marginal farmers to choose to rent from organized players.

► Increasing Number of Organized Players:-
The Indian government and several organized players entered the picture in recent years; the organized companies began making investments in the industry, and they later established online apps and service centres that are assisting farmers by making renting tractors simple, accessible, and reliable. In contrast to unorganized players, companies guarantee farmers that they will be responsible for any wear and tear on the tractor during the rental period. As a result of all these initiatives, farmers are gradually turning to organized players, but the road ahead appears to be quite difficult.

► Key Developments:-
The Indian tractor rental market is highly competitive, with several players vying for the market. Several competitors in the Indian tractor rental market set themselves apart by providing value-added services including operator training, repair and maintenance services, and financing alternatives. Players are developing various tactics to enhance their market shares. The pricing strategies adopted by players in the Indian tractor rental market are also critical in differentiating themselves. Some players adopt a premium pricing strategy, offering high-quality tractors and value-added services, while others focus on offering low-priced options to appeal to price-sensitive customers.

► Further Key Findings
■ Government Investments: The government is investing more money in agricultural technologies and undertaking more measures to improve agricultural activity. Implementing agricultural loan waiver programmes encourages farmers to rent farm machinery. Governments around the world have introduced a number of programmes to free farmers from debt and promote farm.

■ Free Tractor Rental Initiative: In an ongoing effort to assist the Government amid the second wave of the COVID surge, Tractors and Farm Equipment Limited, the third-largest tractor manufacturer in the world and a member of the Amalgamations Group, announced its "Free Tractor Rental" programme to aid small farmers in Tamil Nadu during this crucial cropping season.

■ Global Positioning System: GPS technology provides the benefit of collecting real-time or accurate data. It is mainly used to evaluate locations, farm planning, field mapping, soil sampling, tractor movement, crop observation and many more. In addition, GPS helps farmers to work in low visibility fields such as in rain, fog, wind storm, darkness etc.

■ Increasing Urbanization: Rapid urbanization reduces the availability of farm lands and thus puts strain on farm labor. Estimates suggest that by 2050, percentage of agricultural workers of the total work force would drop to 25.7% from 58.2% in 2001. Given the pressure on dwindling resources, the increased value placed on agricultural productivity, and the expanding urbanization that is reducing the amount of farm labor available, there needs to be a stronger drive to ensure the spread of technology that allow for better use of the land.

■ Large Number of Small-Scale Farmers: Due to the inelastic supply of land and also population pressure, feasibility of increase of agricultural output through expansion of cultivable area is declining. Under such circumstances, the importance of use of machinery in agriculture is increasing to achieve higher production. In the three years from 2016-17 to 2018-19, 2.45 lakh hectares of agricultural land was lost, whereas 9.61 lakh hectares was reduced in the six years from 2013-14 to 2018-19.

Makreo research has published a study titled "India Farm Tractor Rental Market Analysis and Forecast (2018-2028)". This is a detailed evaluation of the Farm Tractor Rental market performance in India that discusses past, present and future outlook of the industry. In recent past industry has experienced many fluctuations due to the external environment. Market Dynamics analysis has also been carried out to review the impact of change in internal factors over the industry performance. The report shed light upon the recent trends prevailing in the Tractor Rental industry of India and also assess future outlook of the industry.

► The report examines the India Farm Tractor Rental market on below parameters:

■ Period of Study
• 2018-2022: Past and Present Scenario
• 2023-2028 : Future Outlook of the industry

■ Market Assessment: The report examines the corrugated box market in terms of market revenue and further breakdown into market segmentation by Organized & Unorganized players and By Tractor Type

■ EPTD & Market Dynamics:
We have studied co-relation of major independent factors those have been covered under the sections:
• EPTD Analysis (Economic, Political, Technological and Demographic Factors)
• Market Trends and Developments
• Market Opportunities
• Market Challenges

■ Company's Mentioned:
• Sonalika Tractors
• Gold Farm
• Farmkart
• KhetiGaadi
• Krish-e
• J Farm Service
• EM3 Agri Services
• Ravgo
• AgroStar
• Escorts Agri Machinery
• Oxen Farm Solutions

For more information on the research report, refer to below link:
https://www.makreo.com/report/india-farm-tractor-rental-market-analysis-forecast-2018-2028

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This release was published on openPR.