The growth of the manufacturing industry is expected to boost the cultivator and tiller machinery market worldwide. The demand for cultivator and tiller machines is growing owing to their use for multiple purposes such as tilling, plowing, harrowing, and planting. For instance, in India, the increase in demand for farm tractors and harvesting machinery is expected to spur the overall market growth. It has been noticed that the two Indian manufacturers of power tillers have a manufacturing capacity of 90000 power tillers per annum. The Indian power tiller manufacturers provide direct and indirect employment to many people in the country. Therefore, the government is endorsing the call to ‘Make in India,’ and the domestic tillers are given preference over imported tillers.
The domestic companies are provided adequate support to make their product competitive compared to the imported products through appropriate moderation of tariff and streaming the domestic taxes by making it less onerous to boost the demand of cultivator and tiller machinery across the country.
Export-related incentives are provided to domestic tiller manufacturers. Further "providing subsidies, lowering the cost of capital" and creating special economic zones for some or all manufacturing activity, in particular, reduce the cost of doing business, increase profitability, and hence encourage the manufacturing industry, which is expected to drive the cultivator and tiller market.
Growing demand for tiller and cultivator machinery from emerging countries
The demand for tiller and cultivator machinery is growing in the agricultural industry, from emerging countries such as China, India, and Brazil, due to government subsidies. The prospect of cultivating and tilling machinery looks bright, as more and more farmers are adopting automation and precision agriculture practices in developing countries.
According to the World Bank Organization, the agriculture sector has witnessed two to four times more effective growth in raising incomes among the poorest than other sectors. Agriculture contributes one-third of the global gross-domestic-product (GDP).
Traditional farming techniques such as plows, tillage, and seeders are now being replaced with various modern agricultural machinery. Advanced farming machinery equipment is being used in various processes to enhance overall crop output and quality. Another key reason for the predicted growth is government subsidies and low rates offered to farmers in emerging countries to adopt agricultural machinery. Modernization of agriculture, including the technological advancement and introduction of high-performance cultivators and tillers, has increased the demand for cultivators and tillers.
Cultivators and tiller machinery are used for the mechanization and automation of farming activities. It plays a major role in increasing agricultural output and efficient utility.
Cultivator and tiller machinery is used to prepare the soil, sowing seeds, planting seeds, adding & spraying the fertilizers, herbicides, and water, crop growth, loosening the soil, and destroying the weeds.
Automated self-driving technology is fueling the agriculture technology revolution, and increasing investments in technology related to cultivator and tiller machinery are driving the growth of the market.
The used tiller machinery also has a significant demand in the market, as these products are offered at much lower prices, targeting low-income customers, such as small-scale farmers. It has been identified that the farmer’s main objective is to achieve low agricultural expenses during the cultivation process. This objective compels farmers to purchase low-cost machinery like tillers in their small and medium-scale agricultural lands. Hence, these factors are driving the growth of the market over the forecast period.
Labor shortage and increasing labor wages are pushing the demand for cultivators and tillers.
The modernization of the agricultural industry and increasing labor wages push the demand for cultivators and tillers worldwide. The rise in the need for agricultural output is also boosting the agricultural machinery industry, which is also driving the cultivator and tiller machinery market.
The labor shortage has been a major reason that has driven farmers towards cultivator and tiller machinery. Large-scale migration from rural to urban areas and several rural employment schemes have created a labor shortage in rural areas.
For instance, in India, the National Rural Employment Guarantee Agency (NREGA) has had a ripple effect on labor shortage leading to farm mechanization. This scheme's implementation has significantly reduced the inflow of seasonal migrant laborers from Bihar and UP to states like Haryana and Punjab during the crucial sowing and transplantation season. As a result, the demand for cultivator and tiller machinery has witnessed a significant increase in these states.
In recent years, several banks and microfinance institutions have been set all across rural India. This has provided farmers an easy availability of credit to purchase farm machinery.
As a result of strong economic growth and agricultural productivity, rural households' income levels have been continuously increasing over the last few years. Rising incomes have enabled farmers to increase their spending on cultivator and tiller machinery significantly. These factors drive the growth of the market in the forecast period.
The increasing need for food with an increase in population
Population growth might also contribute to an increase in farm households' number, thus reducing farm size. This can cause a decrease in total productivity unless the yield per area is improved. Machinery that can increase the production per unit area, therefore, is desperately required.
According to the World Bank database, the Asia-Pacific region's total population is set to reach 4.17 billion in 2030. This further signifies that the demand for food and other agricultural products will continue to grow, thereby surging the demand for agricultural machinery to achieve optimal production efficiency.
For instance, India and China, among others whose primary population depends on farming, earn their livelihood. Governments of these and other similar countries are focusing on various methods to increase food production to meet the growing population's needs. In this region, the demand for harvesting machinery is most prominent. This factor is also driving the growth of the market in the forecast period.
Traditional agriculture techniques that use human & animal labor were time-consuming and lacked efficiency. The introduction of innovative agriculture equipment such as cultivator and tiller machinery is anticipated to reduce production time, enhance product quality, and improve farmers' production efficiency.
About Us:
DataM Intelligence was incorporated in the early weeks of 2017 as a Market Research and Consulting firm with just two people on board. Within a span of less than a year, we have secured more than 100 unique customers from established organizations all over the world.
For more information:
Sai Kiran
Sales Manager at DataM Intelligence
Email: info@datamintelligence.com
Tel: +1 877 441 4866
Website: www.datamintelligence.com
