Custom hiring centres for climate smart agriculture: Profitability, performance and policy outlook
Custom hiring centres for climate-smart agriculture
DOI:
https://doi.org/10.21921/jas.v12i04.15264Keywords:
Custom hiring centres, Agricultural mechanization, Small and marginal farmers, Farm productivity, Farmer Producer OrganizationsAbstract
Custom Hiring Centres (CHCs) have emerged as a pivotal mechanism for promoting agricultural mechanization, particularly among small and marginal farmers who face constraints in accessing costly farm machinery. This study examines the economic feasibility, operational efficiency, and socio-economic impact of CHCs, emphasizing their integration with Farmer Producer Organizations and Self-Help Groups to enhance collective management and sustainability. The analysis considers capital investment, recurring costs, revenue generation, and cost-saving potential across a ten-year operational horizon. Findings indicate that CHCs recover their initial investment within three years, with stable annual net income ranging from Rs. 11.22 lakh to Rs. 12.28 lakh. Key financial indicators, including a Net Present Value (NPV) of Rs. 32.26 lakh, an Internal Rate of Return (IRR) of 68%, and a Benefit–Cost Ratio (BCR) of 1.49, demonstrate strong financial viability. Mechanization through CHCs significantly reduces cultivation costs, improves labor efficiency, and facilitates timely farm operations, contributing to enhanced cropping intensity and productivity. By providing equitable access to machinery, CHCs support resource-poor farmers, address labor shortages, and promote technology adoption. The study underscores the importance of institutional support, skill development, and systematic maintenance for maximizing operational efficiency.
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Copyright (c) 2025 BIKASH SARKAR Sundaram, PREM KUMAR SUNDARAM, PAWAN JEET, DEOKARAN, RAMKEWAL, A P ANURAG, B P BHATT, BANDA SAINATH, ANIRBAN MUKHERJEE, UJJWAL KUMAR, ABHAY KUMAR, A UPADHYAYA, ANUP DAS
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