AN ARTICLE ON POWER TILLERS
MUMBAI: The China bug has hit Indian farmers too. Increasingly, Indian farmers are opting for tillers that are assembled from Chinese completely knocked down (CKD) units as imported tillers are about 20per cent cheaper than the Indian-made tillers.
The tiller industry, mostly accounted for by small and medium units, has started looking up in recent times, after weathering a rough patch when many tiller manufacturing units closed shop.
Many new units have come up now and these include companies that assemble Chinese completely knocked down units for marketing in India. The tiller industry is expected to grow at the rate of 15per cent for the next 2-3 years, on the back of good monsoons, availability of easy financing and non-availability of labour in the agriculture sector.
Imports from China account for about 20per cent of the total industry sales, compared with the 10per cent market share enjoyed by imported tillers a few years back. The demand for tillers imported from China is growing on account of it being about 10-20per cent cheaper than its Indian counterpart. However, market sources indicate that due to poor quality and a lack of after sales service, these tillers are unable to find widespread acceptance.
The other option for farmers is the power tiller, which is one of the many farm mechanisation inputs like tractors used by farmers today. Power tillers are the two-wheeled version of tractors that are targeted at farmers with small land holdings, or those who cannot afford expensive tractors. It works best on smaller land holdings (up to 2.5 hectares) and the horse power requirement is lower. Most of the power tillers are diesel operated with a horse power ranging from 5.5 to 13. Today, the average cost of a power tiller is around Rs 95,000 (the cost of a tiller is almost one-third the cost of a tractor).
As power tillers use less labour per unit of land compared to tractors and bullock carts, it is increasingly used in very intensive cultivation of paddy, intercropping for horticulture and plantations. Some of the Far east countries like Japan, China and Taiwan are also encouraging the use of power tillers in small land holdings.
With additional fittings to the tiller, such as a mould board plough, pump set, sprayer or a thresher, the final price can go up further. Obviously a power tiller is a choice for those farmers who need a mechanical source of power for smaller farm operations. Incidentally, power tillers, like tractors, enjoy nil duty as the government hopes to encourage their use among small farmers.
The Indian market for power tillers is around 20,000 units annually, mainly concentrated in the eastern and southern parts of India. Nearly 16,000 tillers are sold by two players — VST Tillers and Kamco. The other 4,000 units are imported from China.
The growth of the tiller industry is dependent on the availability of government subsidy to small and marginal farmers (subject to 30per cent of the capital cost, whichever is lower). A power tiller owner is able to recover a better margin and fixed cost from custom hiring, unlike a tractor owner, say industry observers.
However, a small farmer can hardly afford a power tiller. In order to tap the growing market for low-end tillers, companies like VST import tillers in the CKD form through their marketing and distribution network. This tiller, for instance, marketed under the brand name Dragon Power tiller (14 hp horizontal four stroke single cylinder) is available at Rs 66,000. The Bangalore-based company is understood to be offering cheaper products along with its indigenously designed products.
