India Combine Harvester Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

India Combine Harvester Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The India Combine Harvester Market size is estimated at USD 179.43 million in 2023, and is expected to reach USD 235.62 million by 2028, growing at a CAGR of 5.60% during the forecast period (2023-2028).

Key Highlights

• Farm mechanization saves time and labor, cuts down crop production costs in the long run, reduces post-harvest losses, and boosts crop output and farm income. Some of the main things driving the Indian combine harvester market are the lack of farm workers, rising farm wages, and the government's support for more farm automation.But farmers face big problems, like the loss of farmland due to continued land fragmentation and the high cost of combine harvesters. These problems are likely to slow the growth of the market studied in the coming years.
• The Government of India supports farmers in adopting farm mechanization through various public schemes. One such program that the GOI launched is the Sub-Mission on Agricultural Mechanization.Recently, in 2020-2021, a budget of nearly USD 140 million has been provided for the scheme, of which around USD 72 million has been released to the state governments. Government support and rising investments are expected to boost the sale of combine harvesters and other farm machinery in the country.
• Farmers also get training from the government through different local groups and institutes.One of the most popular ways to get equipment in the country is through leasing. The Indian Council of Food and Agriculture says that the number of people working in agriculture in India will drop by 25.7% by 2050.The labor shortage, especially in northern states like Punjab and Haryana, resulted in the growing adoption of farm machinery, including harvesters, in the country. The cost of both skilled and unskilled laborers is going up all the time.With less people available to work and the cost of labor going up, it is now cheaper for Indian farmers to hire a combine harvester to cut and thrash crops.
• Since farm mechanization is growing in India because of good government policies and programs and a lack of workers, the market is likely to keep growing over the next few years.

India Combine Harvester Market Trends

Increasing Cost of Farm Labors

The number of people working in agriculture has gone down recently because fewer people are interested in farming and more farmers are getting older.As the population of farm laborers continues to decline, farmers feel pressure to keep up with production to meet the growing demand for fresh produce.

Moreover, the downward trend in labor is translating into higher labor wages. For instance, according to the Ministry of Agriculture and Farmers Welfare (India), the average daily wages of field labor were USD 3.8 and USD 3.0 for male and female work, respectively, in 2018, which increased by 10.5% and 13.3%, respectively, and reached USD 4.2 and USD 3.4 for male and female work, respectively, in 2020.

A massive workforce decline is being observed for many reasons. A lack of skilled labor, aging farmers, and younger generations finding farming an unattractive profession contribute to this decline, so encouraging trends for the adoption of equipment like a combine in agriculture are increasing.

The labor shortage has become a big problem, and the fact that farmers are getting older makes the problem even worse. Thus, the decline in the agricultural workforce and this rising labor cost are encouraging governments and private organizations to focus on farm mechanization by adopting equipment like a combine in the agricultural sector, fueling market growth over the studied period.

Increasing Area Harvested Under Crops

Combine Harvester commonly known as ‘combine’ is a key invention that saves cost and time for farmers. As the name suggests, this machine simply combines the three major harvesting operations – reaping, threshing, and winnowing into a single process. Combines are used in the harvesting and cleaning of cereals such as wheat, barley, corn (maize), oats, rice, rye, and sorghum, as well as several non-grain crops, including flax, rapeseed, soybeans, and sunflower seeds.

Combine harvesters are used in the harvesting and cleaning of crops like rice and wheat which are staple crops that are consumed by the population of the country. In the past few years, the area harvested for rice and wheat in India is increasing which can be witnessed by seeing the data published by the Food and Agriculture Organization. For instance, in 2019 the area harvested for rice and wheat was 43,662,300 and 29,318,780 hectares which increased by approximately 6.2% and 7.8% and reached 46,379,000 and 31,610,000 hectares respectively in 2021.

Therefore, the increasing area harvested under crops like rice and wheat directly supports the growth of the combine harvester market because combine harvesters are used in the harvesting of these crops.

Furthermore, several players in the market are launching new products, which is further boosting the market growth. For instance, in October 2021, Swaraj released the Gen2 8100 EX self-propelled combine harvester, which will give paddy farmers in the country better productivity, performance, and ease of use while maximizing potential grain yield for best-in-class acreage.

India Combine Harvester Industry Overview

The Indian combined harvester market is consolidated. The major players in the markets are Claas India, Dasmesh Group, Preet Group, and John Deere India Pvt. Ltd, and New Hind Agro Pvt. Ltd. Companies are competing based on product quality and promotion and focusing on strategic initiatives to account for prominent market shares. Companies are heavily investing in developing new products while collaborating with and acquiring other companies, which may increase their market shares while strengthening their R&D activities.

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