Can mechanization in agriculture help achieving sustainable development goals?

This paper examines the spatial and temporal patterns in the cost of production for major crops, its determinants and potential in enhancing farm incomes. Specifically, it examines whether farm mechanisation can help reducing the cost of production (COP) in agriculture. The data were compiled from the ‘Comprehensive Cost of Cultivation Scheme’ of the Government of India, and covered 8 major crops among cereals, pulses, oilseeds, and commercial crops. It is found that COP grew between 2004–05 and 2014–15 with mechanisation but declined with increase in the human labour and yield. The results, though corroborate the findings of other studies on the subject, are seemingly contrary to our expectations. Higher level of use of farm machinery as revealed by the Input Surveys of the Ministry of Agriculture and Farmers Welfare, Government of India, could partly clear this contradiction. It may also be explained by an inelastic substitution of machine use for human labour and incompatibility of the type of farm machinery along with the existing format of custom hiring with land holding structure. Making available professional custom hire services that can ensure timely and dependable services through schemes like Custom Hire Centres (CHS) and start-ups may shape the future of farm mechanisation.