Enhancing Farmer's Income through Farm Mechanization: A Panel Data Study of Paddy and Wheat

This study has examined the existing level of mechanization in the country and its impact on yield, cropping intensity and profitability which augment farmers’ income. Though the level of mechanization is increasing in the country, it is still lower than the levels in many developed countries, which provides further scope for extending mechanization across the states and crops. The results of regression model have shown that with every unit increase in farm power availability (kW/ha), there is an increase in productivity (t/ha) and cropping intensity by 0.575 units and 9.649 units, respectively. The panel data regression in paddy and wheat crops for the period 1996–2013 have revealed that use of machine labour has a positive impact on the profitability of both the crops. The state-wise variation in profitability has revealed that states like Haryana and Punjab, where mechanization is highest in the country; the profitability is also high specially in case of wheat. The study has inferred that farm mechanization will be a crucial input for attaining the goal of doubling farmers’ income provided there is proper planning of crops and region-specific policies for promotion of farm mechanization.