Betting big on the Centre's initiative to mechanise farming operations, Kerala Agro Machinery Corporation (Kamco) aims to tap the small agricultural machinery market with its array of products.

The State-owned company is catering to Madhya Pradesh, Odisha, Bihar, Assam, Uttar Pradesh with a slew of its products — power tillers, power reapers, mini tractors, pumpsets, etc.

This small agricultural machinery market is expected to double in the next five years, thanks to the Budget allocation for mechanisation of farming operations, said P Suresh Babu, Managing Director, Kamco.

Demand for tillers

Besides, the rise in small land holdings revival in interest among the youth for agriculture will boost the sale of farm equipments. To cater to the emerging demand, he said a proposal to install automated assembling line for tiller production under the Rashtriya Krishi Vikas Yojana assistance of ₹24 crore is under consideration.

The project aims at doubling tiller production with a cost saving of ₹10,000-15,000 per tiller which can be passed on to the farmers.

Similarly, the demand for power reapers is expected to improve substantially especially for low floor reaping of soyabean dwarf variety.

“We have already received advance bookings from Karnataka, Andhra Pradhesh and Madhya Pradesh,” he said.

According to him, the market size of tillers in India is estimated at 55,000 units per year and of this, the company produces 15,000.

According to P Balachandran, Chairman, the company has generated a net profit of ₹4 crore on a turnover of ₹156 crore in FY18.

By widening the market, Kamco has set a short-term target of achieving a turnover of ₹200 crore and a net profit of ₹7 crore, he said adding that the long-term goal is to offer total solution to all mechanisation needs for farmers by 2025.

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