BENEFITS OF PRACTICING CUSTOM HIRING SERVICES OF AGRICULTURAL MACHINERY

Agriculture Machinery, Zamindara Farmsolutions, Fazilka, Punjab. Source: Sunil Saroj, IFPRI

Over the years, agriculture mechanization has helped to increase production and profitability, improve the use of inputs, reduce the costs of production, and assist in income-building and employment opportunities. Punjab, characterized by smallholder farmers, is a highly mechanized state. Custom hiring services (CHS),  an important mechanism through which most small holders can access services of agricultural machinery.  CHS in the state not only help to generate non-farm income but also enable farmers to produce a second or multiple crops in a year, thus limiting the turnaround time and increasing productivity.

To understand the ongoing and successful models and challenges in CHS, IFPRI organized a 10-day study tour for a delegation from Nepal to visit Fazilka, Punjab and Aligarh, Uttar Pradesh from August 9 to 19, 2015. The aim was to explore the possibilities to replicate CHS models in agri-mechanization in Nepal.

In Fazilka, the group was introduced to the Chaalak Bane Maalik model created by Zamindara Farm. The model, which trains smallholder farmers to become machinery operators, results  in an increase in the social value of farmers as well as their economic status. Tata Chemicals in Aligarh, UP, showcased many ongoing CHS models.

After speaking with the Nepalese delegates, Babushahi, a regional newspaper, reports that the major agricultural problem in Nepal is the retention of interest in farming by farmers and their children. Lakshmi Kant Pandey, director of Global Food and Agri Business Advisory of Nepal, adds that the study tour has displayed many ways to make the agriculture industry more profitable and attractive. Now rural youth can choose to stay in their village and have a job with a satisfactory income.

The Nepalese delegates also interacted with farmers in Fazilka, Punjab. These farmers promote CHS to private companies, the government, and cooperatives. These entities seek to generate an understanding of the challenges faced by farmers and how farmers overcome it.

This initiative is a part of the ongoing USAID-sponsored Government of Nepal-IFPRI project on Policy Reform Initiative in Nepal.

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