India combine harvester market is projected to register a CAGR of 4.4% during the forecast period (2021-2026). During Covid19, the Farm equipment business has seen a sharp dip in sales and the most affected business could be the dealership network due to the disruption supply chain also manufacturing units were not 100 % active which had resulted in a sharp decrease in sales in 2019-2020. Hence global pandemic has caused a negative impact on the Indian combine harvester market. Combine harvesters in India are majorly used for harvesting grains and cereals when compared to other crop types in the country. Farmers are preferring self-propelled combine harvesters over tractor-mounted harvesters due to their high efficiency. Hence, the market for combine harvesters in India is dominated by self-propelled combine harvesters, accounting for more than 60.0% of the market share.
Key Market Trends
Increasing Cost of Farm Labors
The usage of combine harvester was limited, due to the availability of ample labor, low labor costs, and high cost of machines, earlier. However, with rural work programs, such as MGNREGA, the scenario of combine harvesters in India changed. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) goes beyond providing a social safety net toward guaranteeing the right to employment. With the declining labor supply, increasing labor costs, it has become more cost-effective for Indian farmers to hire a combine harvester for cutting and thrashing purposes.There is bieng constantly increase in labor cost of skilled and field labors.
Self-Propelled Combine Harvester Dominates the Market
Self-propelled combine harvesters hold the largest market share, with regard to segmentation by type of harvester. Self-propelled combine harvesters have the highest efficiency when it comes to area harvested, per hour. However, self-propelled combine harvesters are priced higher, and with farmers depending heavily on custom hiring business to improve capacity utilization, the need for ensuring business clientele (smaller farmers) before the harvest season, becomes essential. Self-propelled combine harvesters are often transported from early harvest areas, such as Punjab and Haryana, to other areas of the country, such as Madhya Pradesh and Maharashtra, where the harvests take place later in the season. In 2016, around 5,910 units of combine harvesters were sold in the country.
The Indian combine harvester market is consolidated with major players capturing most of the share. In this market, companies are not only competing on the basis of product quality and promotion but are also focused on strategic initiatives, in order to account for prominent market shares. Companies are heavily investing in the development of new products, and are collaborating and acquiring other companies. The above factor is expected to increase companies' market shares while strengthening their R&D activities.
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