Excerpts from an over hour-long interview with Mallika Srinivasan, Chairman and CEO, TAFE.
On farm land consolidation
We’re not seeing a huge trend there. Yes, there has been some informal consolidation, and some of the cash crops such as sugarcane see large acreage. In potatoes, you see corporate farming.
We are certainly seeing aspirational levels going up, farmers moving from a smaller tractor to a little bigger tractor. While we are seeing aspirations change we are not seeing a huge change that the Indian tractor market is going to move from being 60 hp into a huge above-60 hp market.
On corporate farming
Again, we are not seeing a huge trend; not seeing huge shifts beyond 60 hp, nothing visible to us so far.
On off-field activities for tractors
We do see them as secondary equipment, in infrastructure projects. Also, we see industrial applications with loaders and attachments going into infrastructure, they are not the primary piece of equipment but, yes, we do see them being used.
On specialised applications
Big farm consolidation is not happening so you can’t look at Western models of mechanisation in this country; we got to find our own models. One of the reasons why we brought in smaller compact tractors from Gujarat, the Captain tractors, is that we see them being used for special purpose applications in Maharashtra and Gujarat. In pockets such as vineyards or groundnut areas, which need less tillage or in inter-cultivation, they need lighter and small machines.
On innovation
You can’t just bring in huge combine harvesters from Western countries and put them in this country. In India, traditionally the tractor has been on the top with the harvester built below. Now, we have a tractor at the bottom, and the harvesters are built around the tractor. This, actually, we found lowers the cost, is more fuel-efficient and gives a good performance on the field. Going forward, if you want to capitalise on any of the trends that we are seeing in the market we need to innovate and come up with solutions that would be useful, relevant and cost effective.
Comments:
Mallika speaks sense. She has vision, and content in her communication. She makes it happen and she is one of the greatest industrial leaders Tamil Nadu is proud to have.
Ms. Srinivasan is doing an agriculture equipment business under very restrictive market conditions. I would like to make a suggestion that will not only make good business sense but also help India to achieve food security. TAFE should embark on an agriculture training program for young educated people to make them agriculture entrepreneurs to help elevate Indian agriculture to an industry. These people are trained in the use of modern crop production technologies to achieve 300% to 500% crop productivity per ace that will generate an annual net income exceeding Rs. 2 lakhs per acre. Since India has very favorable long crop growing season, a 3-crop rotation per year may be adopted. He can lease acres from local farmers and over a three year period, expand his farming to over100 acres and also adopt value addition to crops. He will then become financially capable of purchasing the needed equipment to improve his operation. A successful model is being run by GATE Foundation in Chennai
First, the country should permit holding of any quantum of land. There should not
be any ceiling. Only then consolidation of land can take place. Only after that the
agricultural sector can look at improving productivity through adoption of modern
technolgy. If India has to be self sufficient in agriculture, then there should be
positive developments in every aspect of agriculture. Unfortunately, today ,
agriculture is becoming "Loss making sector". Then how come you can expect
people to take up agriculture/farming . I have lot of friends who want to take up
agriculture, more as a fun. But they can be brought into the network, only when
there is an assurance that there will not be any Loss year after Year.
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