Custom hiring centers - Opportunities

Appropriate mechanization is very critical for reducing drudgery and for meeting the shortage of labour. The main objective of custom hiring centers is to supply of farm implements to small and marginal farmers at nominal rates on hire. This enables the small and marginal farmers to take up farm operations on time.  Small equipment like weeders, markers, sprayers, drum seeder etc should be available in custom hiring centers.

Study is conducted in three districts viz Medak, Mahabubnagar and Ranga reddy. Following are the outcomes of the study in Budda samudram village of Mahabubnagar district:

Total farmers: 425

Area in Acres: 1000 Acres

Bore wells: 180

S.No	Crop	Khariff Area in Acres	Rabi Area in Acres
1	Cotton	600
2	Paddy	350	400
3	Chillies	50
4	Fodder	50
5	Vegetables	50

Equipment required for rain fed crops:

S.No	Operations	Equipment required
1	Sowings	Manual
2	Ploughing	Tractor
3	Land preparation	Ploguh bullocks/Tractor
4	Weeding	Ploguh bullocks/Manual labour
5	Fertiliser /organic manure application	Seed drill/Plough bullocks
6	Botanical extracts/Pesticide application	Power sprayer /Tractor mounted sprayer
7	Picking	Labour
8	Drying	Trapalin
9	Transportation	Tractor

Paddy:  

S.No	Operations	Equipment
1	Ploughings	Tractor
2	Transplantation	Manual/Drum seeder
3	Weeding	Weeder/Manual
4	Botanical extracts/pesticides	Power sprayer
5	Harvesting	Harvester/Manual
6	Threshing	Tractor/Plough bullocks
7	Transportation	Tractor

Economics:

Tractor:

	Investment required
S.No	Component	Amount
1	Engine	500000
2	Trailer	100000
3	Discs	50000
4	Cultivator	20000
5	Cage wheels	20000
6	Gorru	7000
7	Rotavetor	100000
8	12 Discs set	30000
9	Sprayer	15000
10	Total cost	8,42,000

Expected income from 1000 Acres (Scope):

S.No	Expected income for 1000 Acres
1	Operation	Rent per Acre	Area in Acres	Expected income
2	Ploughing	500	1500	750000
3	Gorru	750	600	450000
4	Puddling	400	650	260000
5	Spraying (three times)	200	400	240000
6	Rotavetor	200	600	120000
7	Manure/Tank silt application (Trips)	250	2000 trips	500000
8	Transportation	1400	100 trips	140000
9	Total income expected			2460000

Costs and returns:  

Four tractors are working in the village. As these four tractors are not able to meet the demand on time one more tractor is proposed by SHG members and farmers. Costs and returns for four and five tractors are as follows

	Costs and Returns
S.No		Four tractors	Five Tractors
1	Installments	5,60,000	7,00000
2	Driver salary	2,16,000	270000
4	Disel	8,80,000	8,80,000
5	Maintainance	40,000	50,000
6	Total cost	16,96,000	19,00000
7	Net income	7,64,000	5,60,000
8	Net income for each tractor	1,91,000	59,333

Power tiller:

Power tiller is useful for following operations:

A.      Ploughing

B.      Puddling

C.      Transportation (30 bags)

It is useful for in case low-lying lands and for small holdings. Business is available for one power tiller in spite of availability of tractors.

Engine - 12 HP	95,000
MB plough, tiller etc	25,000
Trailer	15,000
Total cost	1,35,000

Expected income for a power tiller:

 

S.No	Operation	Rent per acre	Area in Acres	Expected income
1	Ploughing	300	150	45,000
2	Puddling	300	250	75,000
3	Transportation	500	50	25,000
4	Total income			1,45,000

Costs and Returns:

 

S.No	Componet	Amount
1	Installments	12,000
2	Disel	58,000
3	Maintainance	3,000
4	Total cost	73,000
5	Net income	72,000

 

Combine harvester:

 

Chain type	17,00,000
Tyre type	20,00,000

Expected income:

Area in Acres	Rent	Expected income
400	1700	680000

Costs and Returns:

S.No	Component	Four tractors
1	Installments	80,000
2	Driver salary	60,000
3	Disel	1,20,000
4	Maintainance	10,000
5	Total cost	2,70,000
6	Net income	4,10,000

Taiwan sprayers:

Cost: Rs.17,000/-

Expected income:

Area in Acres	No of sprayings	Rent	Expected income
600	3	50	90,000

Costs and Returns:

There eight sprayers available in the village. SHG members suggested five more sprayers will meet the demand:  

Cost of sprayer	17,000
Petrol	45,000	(1lt for four acres
Maintenance	1500	Engine oil etc
Total cost	63,500
Net income in first year	26,500
Net income from second year	43,500
Net income from existing sprayers	5,437
Net income from 13 sprayers	3,346

Tarpaulins:
	Nos	Expected income
Tarpaulins	100	1500

Equipment for custom hiring center in the village:

S.No	Equipment	Nos required	Approximate cost in Rs.
1	Tractor with all attachments	One	8,42,000
2	Power tiller	One	1,35,000
3	Power sprayers	Five	85,000
4	Tarpaulins	100	10,000
5	Markers	3	1,800
6	Weeders	10	6,500
	Total cost		10,80,300