#1B Country Presentation Nepal The 2nd Regional Forum on Sustainable Agricultural Mechanization Enabling Environment for Custom Hiring of Agricultural Machinery 9-11 September 2014 Serpong, Indonesia#2Role of Custom Hiring Services of Agricultural Machinery in Agricultural Mechanization in Nepal नेपाल कृि अनुसन्धान NARC परिषद Shreemat Shrestha, Chief, Agricultural Engineering Division Nepal Agricultural Research Council#3High Himalaya High Mountain Middle Mountain Siwalik ( Terai 82 84. 85 Nepal 86 B8 Physiographic Regions of Nepal 100 Km Darchula Set R.) Simikot . Baitadi Maquan R. Dandeldhura Silgarhi Karnali A. Jumla Bhen R Dhangadhi ■Birendranagar *Salyan Sarda R Baglung .Tulsipur Nepalganj Mustang China Bramaputra R Peng-ch'u Ho R Nepal Pyuthan Butawal Siddharthanagar •Pokhara Kali R Gurkha Trisuli R. Rasua Garhi Nawakot Kedari Kathmanduo.Bhadgaon Hetauda Patan Bhimphedi Ramechhap Amlekhganj 100 km 75 mi Rapti R. India Ganges R Ghaghara R 81 9 MAGELLAN Geographix (8051685-3100 www.maps.com 84 B8 81 82 83 84 85 Land area 147181 sq km (EW-885 km, NS-193 km) . Population 26.67 M • Three geographical region Terai, Hill & Mountain . Elevation ranges from 70 m to 8848 m ● Climate temperate to sub tropical Arun R SindhulimadSun Birganj Okhaldhunga Kosi R. *Dhankuta Dharan llam Janakpur Gandak R Rajbiraj Baghira Biratnagar Nadi R Rugged terrain and diversity (in all sense) the typical feature#4Agro Eco zone Mountain (35%) Mountain Hill (42%) Terai (23%) Terai (Plain)#5. Agricultural Scenario Dominated by subsistence and small holder agriculture Average land size <0.65 ha. Agriculture contributed 34% AGDP and employment to about 60 percent of population Young people moving away from agriculture. Aging of farm labour Feminization in agriculture. Emerging commercialization in agriculture#6Area and Production of Cereal Crops, 2012/2013 Crops Area (ha.) Production (mt.) Yield (kg/ha) Paddy 1420570 4504503 3171 Maize 849635 1999010 2353 Millet 274350 305588 1114 Wheat 754243 1727346 2290 Barley 29598 33782 1141 Buckwheat 10681 10056 941 Total 3339077 8580285 2570#7Empty#8Gender-wise Farm Labour Involvement in Agricultural Operation in Terai 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Primary and Secondary Tillage Farm Yard manure Transportation Planting/Sowing Fertilizer application Female Weeding Irrigation Plant Protection ■Male Harvesting Threshing Cleaning/winnowing Transportation#9Status of Agricultural Mechanization (Source: National Sample Census of Agriculture, CBS, 2012) Machinery/Equipments used No of Households % Households Iron ploughs 1,073,441 28.02 Tractor & Power tillers 920,371 24.03 Thresher 803,154 20.96 Pumping sets 548,203 14.31 Sprayers 574,014 14.98 Shallow tubewells 367,744 9.56 Deep tubewells 159,725 4.17 Treadle pump (Dhiki) 79,145 2.06 Animal drawn cart 334,978 8.74 Other Equipments 290,084 7.57#101989/90 2000 4000 00 1990/91 1991/92 1992/93 1993/94 1994/95 1995/96 1996/97 1997/98 1998/99 6000 8000 1999/00 2000/1 2001/2 2002/3 2003/4 2004/5 2005/6 10000 2006/7 2007/8 2008/9 12000 2009/10 2010/11 2011/12 2012/13 Trend of Tractor Registered in Nepal#11100 90 80 70 60 50 40 30 20 10 0 Farm Power Used in Agricultural Operation in Terai Animal Mechanical Human Primary and Secondary... Farm Yard manure... Planting/Sowing Fertilizer application Weeding Irrigation Plant Protection Harvesting Threshing Cleaning/winnowing Transportation#12Constraints of Agricultural Mechanization in Nepal • Past policies ignored mechanization due to fear of labor displacement by the use of larger power operated machines (mainly tractor). Agricultural Policies and Plans such as APP(1995-2015) and other policies did not have any policy statement on agricultural mechanization • Past policies such Land Act (1964), National Civil Code (1853;1962) have encouraged land fragmentation with the provisions of land inheritance & land ceiling resulting in disincentives for mechanizations • Subsistence farming, small farm size, fragmented land holding and physical constraints of rugged and steep topography, narrow terraces in Hills and Mountains discouraged use of machineries. • Infrastructure, institutional capacity and capital constraint.#13Status of Agricultural Mechanization Tillage • • • • • Majority of tillage by animal power Only 28% of farmers use iron plough In Nepal 25 % use tractor & Power tiller Most of the tractor use cultivator Custom hiring of tractors is common Power tiller / mini tiller is getting popular#14. Status of Agri .Mechanization (cont.) Planting / Seeding Rice is manually Transplanted • Wheat is broadcasted Maize & vegetable seeds is dibbled More than 64% is performed by women Zero till drill & minimum till drill is being promoted RealNepal.com.np#15Status of Agri. Mechanization (cont.) Inter-culture Operation Rice, Potato, maize and vegetables need major inter culture operations Hand tools- Khurpi and sickles, Kuto etc. are used Bullock drawn local plough is also used for maize inter culture More than 72% of inter-culture operation by women#16Status of Agri.Mechanization (cont.) Irrigation 42% of area irrigated and 18% year round only 242000 ha is irrigated by GW in which 208746 is through STW and 33732 ha by deep tube wells 14.3% of farmers use CF pump mainly for shallow tube well and lifting water from river More than 100000 treadle pumps in terai Simple low cost drip system and sprinkler irrigation is being used for vegetable cultivation#17. Status of Agri.Mechanization (cont.) Harvesting Manually performed by using Locally made sickles Serrated sickles locally made is also popular More than 300 Combine harvesters are in operation in Terai 4 wheel tractor operated reapers, power tiller & mini tiller operated reaper are also getting popular OPEL 401-139 SHAT ER Combine Harvester in Operation#18Status of Agri. Mechanization (cont.) Threshing Beating on stone/ drum Animal/ tractor treading 21% of Nepalese farmers use thresher. It is found that more than 85% of threshing in terai is performed by thresher#19Demand for Agricultural Mechanization •⚫ In recent years, however, demand for mechanization is increasing with acute labor scarcity at peak season and high cost of production (as a result of increased wage rate) in farming resulting in from youth migration and feminization Wage rate in agriculture has doubled in the last 10 years and households receiving remittance income has more than doubled in the last one and half decade from 23% in 1995 to 56% in 2010. (CBS, 2011) Female headed households have also doubled in last 15 years from 13% in 1995 to 26 % in 2010 (CBS, 2011).#20• . Demand for Agricultural Mechanization... Increased attraction of returned youth migrant in commercial agriculture and use of modern machineries Increasing road connectivity in rural areas resulting in use of tractors and other machineries Increasing realization of agricultural mechanization among planners and policy makers resulting in development of new policy on Agri Mechanization Very liberal import policy with tax exemption for Agricultural Machinery particularly on Tractors Spill over effect from neighboring countries#21Agricultural Mechanization and Custom Hiring ● Custom hiring has got 35.00 major role in agricultural 30.00 25.00 mechanization due to 20.00 following reasons 15.00 - - Small land holding 10.00 - Low purchasing capacity 5.00 - - Less technical capability - Economy in renting in of agricultural machinery than self owning 0.00 With out land < 0.1 ha 0.1-0.2 ha 0.2 ha - 0.5 ha 0.5 ha -1 ha 1 - 2 ha 2-3 ha 3-4 ha 4-5 ha 5 - 10 ha >10 ha#22Custom Hiring of Equipment Custom Used HH Owned HH Hiring HH Used/ Owned Iron ploughs 1073441 838176 235265 1.28 Power tillers 75671 9123 66548 8.29 Tractor 844700 36158 808542 23.36 Thresher 803154 48157 754997 16.68 Pumping set 548203 136607 411596 4.01 Animal drawn cart 334978 155272 179706 2.16 Sprayer 574014 248790 325224 2.31 Other equipment 290084 81684 208400 3.55#23100% Share of HH Using Custom Hired Agricultural Equipment and Self Owned Equipment 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Iron ploughs Tractor & Power tillers Thresher Pumping set/ Animal drwan Sprayer Motor cart Other equipments Owned & Used Used by Custom hiring#24. . Characteristics of Custom Hiring of Agricultural Machinery Informal business (not recognized by government) Various types - Means of Livelihood (animal drawn Plough, traditional water mill) - Partially commercial (power tiller, pedal operated thresher, winnower, pumping set, sprayer etc.) Commercial business (Tractor, power tiller, tractor operated thresher, combine harvester, grain processing mills etc.) Mainly Individually owned machinery, group and cooperative owned machinery not that successful Lack of capacity on technical maintenance, management including record keeping • Wide range of renting charge of same equipment service in various location. Most of the service is provided in same village except tractor, power tiller, tractor PTO driven thresher and combine harvester#25Custom Hire Charge of Agricultural Operation Eastern Central Western Custom Hiring Service Mid Western Far Western Tractor with Cultivator 1200 to 1000 to 1100 to 1200 to 1500 1200 (Rs. Per hour) 1500 1200 1500 Tractor with rotovator 1600 to 2000 (Rs. per hour) 1500 to 2000 1400 to 2000 2000 Power Tiller (per hour) 500 to 600 500-600 600 300 to 500 400 to 600 Animal Drawn Plough 450 to 1000 1000 1000 (Rs. Per day) 25 to 40 700 to 1000 80 to 100 1300 Sprayer (per day) Pump set (Rs. Per hour) Thresher (grain: grain threshed) Combine Harvester (Rs./hr) 25 to 100 80 to 100 15 to 50 300 to 400 250 to 350 300 to 500 250 to 400 250 to 300 1:20 to 1:10 1:12 to 1:8 1:15 to 1:10 1:13 to 1:8 1: 9 to 1:07 4800 to 5000 5000 5000 1USD= Rs. 98 4500#26· Farmer's Perspective on custom hiring service provided Monopoly of custom hiring service provider High rate but quite cheaper than traditional practice Service not available at right time and have to wait for long time Some case poor quality of service ( grain cracking in threshing) • Some times operation at night • Difference in rate from one service provider and other Straw burning after harvester led to lack of fodder for livestock farmers#27Custom Hiring Service Provider's Perspective Lack of spare parts and repair and maintenance service Difficult in credit availability and high interest rate from bank High competition in same location . Lack of technicians/operators ● • Farmers not demanding service in advance Difficulty in collection of service charge specially during tillage No support from government Obstruction of use of agricultural tractor in non agricultural use Government's inconsistent approach#28• Some Custom Hiring Innovative Service Providers • • • Collection of service charge in terms of kind during threshing, milling etc. Innovative service provider promoting Laser land leveling service, rice transplanter, zero till drill, straw harvester, micro hydro powered grain processing mills etc. Organized machine service provider in Biratnagar "Nepal Krishi Company" Promoting agricultural cooperative to provide custom hiring service. through cooperatives. 1 It has successfully demonstrated that cooperative can provide service to 135 ha of rice- wheat/lintel farming by using 2 tractors, 1 tractor trolley, 2 rotovator, 2 cultivators, 2 levellers and 1 combine harvester. It is found that annually Rs. 6.4 million can be saved from 135 ha by mechanized farming (tillage and harvesting). It has been adopted in 4 cooperatives in eastern terai. Gravity ropeway for transportation in the hills Custom hiring in colaboration with farmer's group#29● . . Major Findings of Survey Custom hiring service providers has major role in promotion of agricultural mechanization among small holder farmers in Nepal. Among the agricultural machinery used household the custom hired agricultural machinery used HH for metallic animal drawn plough is 22%, power tiller and tractor is 88%, thresher 94%, sprayer is 57%, water pump is 75% and other agricultural equipment is 72 %. Privately owned agricultural machine custom hiring service is found to be more successful than the group owned agricultural machinery service provider. Increased use of machinery has caused increased accidents. Custom hiring service in tillage, water pumping, harvesting and threshing has been successfully used in terai region of Nepal milling and transportation all over Nepal. Almost all the custom service providers are providing their service informally, as none of them are registered. There are several important issues raised by custom hiring service provider and the farmers which is needed to be addressed by the government for promotion of agricultural mechanization in Nepal.#30Suggestions and Recommendations Government's Role: . Custom hiring service provider should be well recognized as major and strong stakeholder in promotion of sustainable agricultural mechanization in Nepal. Government as facilitator and should create enabling environment for custom hiring service provider in following area - Recognition of service provider through registration. (Nominal registration fee and tax waived). - Create a database and monitoring of service. - Innovative and best custom hiring service provider should be awarded – R & D on appropriate models of custom hiring - Capacity development of service provider on selection, procurement, operation and maintenance of agricultural machinery, record keeping and service management and marketing skill - - - Policy for easy access to credit and subsidy in bank interest. Selective, targeted and sustainable subsidy on agricultural machinery Promote custom hiring service providers for competetive renting.#31- - - - - - - - Government's Role (contd.) As custom hiring service provider can also be promoter of improved agricultural technology, they should also be trained in improved agricultural technologies Human resource development to develop the operators and technicians Facilitate to fix maximum rate of service in consultation with leader farmers and service provider (new agri mechanization policy) Demonstration of innovative and efficient agricultural machinery through custom hiring service providers Preparation & implementation of law, regulation and standard of custom hiring service. Testing and Standardization of Agricultural Machinery. Other subsidary policy and regulation viz. land consolidation, rural development, agricultural credit, rural energy, agricultural road, market storage facilities, custom duty, etc favorable for SAMS • Support / policy incentives for green technologies viz. energy efficient technologies, conservation agricultural technologies, GAP, RETS etc. Insurance in agricultural machines/ operators#32. Role of farmers Plan the agricultural operation in advance inform the service provider in advance Block approach/group approach for small holders Record keeping • Get information about the new technology, available custom hiring service providers. Maintain farm roads, irrigation, field condition in advance Pay immediately after service. Commercialize their production system with direct access to the market Primarly processing in farm itself - value addition.#33Role of custom hiring service provider It is their business it should be profitable to be sustainable. Preparation of complete updated business plan ( technical, financial, marketting, human resource etc.) and seasonal planning. Record keeping financial, customer, maintenance, service etc. Focus on Quality service, competetive price and customer's satifaction Custom hiring service provider should use ICT for communication to customer and other service providers for timely and quality service Custom hiring service provider should diversify their service through the introduction of new and innovative agricultural machinery. Other agriculture technology and input service be linked with machinery service (marketting strategy) Take care of safety with primary responsibility (operator, environment and consumer) Custom hiring service provider should be organised and create a network to share the problems and lobby the government for favorable policy.#34Sustainable Agricultural development in Nepal is possible only through competetive, innovative, efficient and reliable custom hiring of agricultural machinery in business model by the young farmers#35Everest Co Thank You WHERE