Ensuring availability of adequate farm power for small farms will be a big challenge
Reduces cost of various agricultural works through the better management of costly inputs, increasing the productivity of natural resources.
In 1960 - 61, about 92.30% farm power was coming from animate sources, in 2014 - 15 the contribution of animate sources of power reduced to about 9.46%
Mechanical and electrical sources of power increased from 7.70% in 1960 - 61 to about 90.54% in 2014 - 15.
Establishment of Farm Machinery Banks and High-Tech Hub for custom hiring services are supported with financial assistance@40% of the project cost under RKVY and SMAM.
Madhya Pradesh, Orissa, Tamil Nadu, Maharashtra, Himachal Pradesh, Chhattisgarh, Andhra Pradesh, Telangana etc. have achieved good progress in the field of agricultural mechanisation
Degree of Farm Mechanization
Expressed as a ratio of mechanical power to cultivable unit area.
Increased at a very slow pace from 0.48 kW⟋ha in 1975 - 76 to 1.84 kW⟋ha in 2013 - 14.
From the year 2014 - 15 to 2016 - 17, increased to 2.02 kW⟋ha
Demand for food grain is increasing- estimated that by 2025 we have to produce more than 300 million tonnes.
According to the 2011 census, 263 million people (54.6%) are engaged in the agriculture sector. Likely to decline to 190 million (33%) by 2020. This increases importance of mechanization in face of decreasing work force
Barriers to Mechanization
Shrinkage in average size of the agricultural lands will make individual ownership of agricultural machinery gradual and more informal.
Ensuring availability of sufficient farm power for small farms will be a big challenge.
Overcoming skill barriers to provide adequate support to modern technology
Link sustainable development of agricultural mechanisation without neglecting the lack of energy and environmental degradation due to low availability of fossil fuels and its high cost.
NMCE, ICEX Merge to Create India՚s Third Biggest Commodity Exchange
National Multi Commodity Exchange (NMCE) - India՚s first demutualized online national multi-commodities exchange will merge with Indian Commodity Exchange (ICEX) to form India՚s third biggest commodity exchange.
Largest commodity exchange by volume- Multi Commodity Exchange (MCX)
First merger deal in the commodity exchange space
Will offer world՚s first diamond futures contract
Commodity exchanges offer a wide range of contracts, including bullion, oil, rubber, and other agri-commodities.
Commodity Market
Market that trades in primary economic sector rather than manufactured products
Soft commodities are agricultural products such as wheat, coffee, cocoa and sugar.
Hard commodities are mined, such as gold and oil
Purely financial transactions outnumber physical trades in which goods are delivered
Contracts can include spot prices, futures, forwards and options on futures.
Sophisticated products include interest rates, environmental instruments, swaps, or ocean freight contracts.
Commodity Trading in India
India has six national commodity exchanges:
Multi Commodity Exchange (MCX)
National Commodity and Derivatives Exchange (NCDEX)
National Multi-Commodity Exchange (NMCE)
Indian Commodity Exchange (ICEX)
ACE Derivatives exchange (ACE)
Universal commodity exchange (UCX) apart
Regulatory body is Forward Markets Commission (FMC) formed in 1953 and merged with the Securities and Exchange Board of India (SEBI) in September 2015.