Odisha: Agri equipment manufacturers demand government purchase

As farmers are equally affected due to the pandemic, their economic condition will not allow them buy agricultural implements at market rates.
Bullock Cart (Photo | PTI)
Bullock Cart (Photo | PTI)

BHUBANESWAR: Even as farm mechanisation is one of the thrust areas of Odisha Agriculture Policy-2019, manufacturers of agricultural implements in the State are facing a tough time without any purchase orders from the government in the last two years.

The Agriculture department procures farm implements like harvesters, tractors, power tillers, pumps and manual/bullock drawn and small power implements. These implements are supplied to farmers at a subsidised rate.

The State level technical committee fixes the subsidy for each big implement. The subsidy for manual/bullock drawn and small power agricultural implements is almost 50 per cent of the cost. The subsidy is shared by both the State and Central governments. 

The business volume of the farm implements supplied to small and marginal farmers by the State manufacturers is around Rs 30 crore per year, whereas big machines supplied by dealers of outside companies have turnover of over Rs 400 crore.

“State manufacturers who supply MB plough, HS plough, power thresher (with motor and without), row maker, manual hand plough, rotavator and power weeder to name a few have not received a single order from the government since the Covid-19 pandemic broke out,” said general secretary of Orissa Agricultural Implements Manufacturers Association (OAIMA) Vijay Munjal.

Although the kharif operation has picked up in the State, the department is yet to place any order for farm implements to the manufacturers. Farmers will not only be deprived of their need for agricultural implements, this will also lead to reduction in food productivity. 

As farmers are equally affected due to the pandemic, their economic condition will not allow them buy agricultural implements at market rates. 

The association has requested the government to increase the subsidy to enable the small and marginal farmers who constitute about 80 per cent of the farming community to meet their need of farm implements.  

The OAIMA urged the government to revise the prices of agricultural implements fixed by the committee in 2019 as it is not feasible to supply at the current rates due to steep hike in prices of steel and other components. The association has further requested the department to release the old dues of local manufactures which are mostly micro and small units.

Sales revenue

  • Rs 30 crore turnover by State manufacturers 

  • Rs 400 crore by dealers of outside companies 

  • Govt supplies farm implements to farmers at a subsidised rate

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