Invest in the Booming Agriculture Equipment Sector

Over the last few decades, the Agriculture Sector in India has made appreciable progress with its ample resources of water, land, and sunshine. India produces all major crops to meet the requirements of food, fiber, fodder, fuel, and inputs for its agro-industry. High Labor Scarcity and Government Subsidies are Driving the Agricultural Mechanization.

Invest In The Booming Agriculture Equipment

Agriculture Equipment Distributor

Farm equipment is one of the agriculture-allied sectors that is booming all the time. There has been rapid growth in the Indian agricultural equipment market with expected strong potential for future growth as well. Asia-Pacific was the hot region where demand was more than twice in any other region. In Asia-Pacific, India is one of the primary nations which have fuelled the growth of the agricultural equipment market. Power tillers combine harvesters and rice transplanters, tractors are some of the farm implements for which a surge in demand has been observed during the past few years.

Many factors affecting agricultural machinery sales in India include the monsoon, govt. declared support prices for crops, commodity prices, crop production expenses including fuel, fertilizer, pesticides, and other costs, and the credit policy announced by banks.

Government to give a push to the agriculture equipment industry: 

The most awaited maiden budget presented by the Modi government shows a sustaining level of growth of 4% in agriculture.

The finance minister, Arun Jaitley has proposed a new scheme, ‘Pradhan Mantri Krishi Sichayee Yojana’, with an allocation of Rs 14,389 crore to expand irrigated area. Similarly, for expanding water availability in rain-fed areas, the budget has pushed the watershed program with a new scheme ‘Neeranchal’ with an outlay of Rs 2,142 crore. And also the budget proposed to raise investment in agriculture. Agricultural credit has been increased to Rs 8 lac crore. A new scheme is proposed, ‘Long Term Rural Credit’, for purchasing farming equipment. It would require investment over the long term and should help private investment boost for higher agricultural growth.

Moving forward with the distribution channel:

Agricultural equipment manufacturers are looking for distributors:

  • Who has the business know-how and financial resources to represent their products successfully? Distributors with strong people skills and retail management experience are also wanted by the manufacturers.
  • Previous experience in sales and a connection with the farm community can assist the distribution partner in building a successful business relationship.
  • Agricultural equipment distributors and dealers should be expected to sell to a diverse audience including, landscapers, weekend farmers, commercial farmers, and general contractors.

What about the investment and margins of a distributor?

There are stronger margins in the agri-implements industry and investment is as per the size of the industry. Small farming equipment machines require less amount of investment whereas tractors and other big machines require at least a minimum of 5 lacs.

Start plowing ahead in the global market. It’s worthwhile. Being the broadest economic sector, the agriculture sector plays an important role in the overall social-economic fabric of India. According to research,” Millions of people were employed in agro-business over the last few years”. With appreciable improvements in irrigation facilities, modern agricultural practices, subsidies, and credits, agricultural output has been secured. This money-generating industry still has the scope of expansion in various allied sectors like agricultural machines & tools, agro-based products, irrigation equipment, farming equipment, animal husbandry, and more.

Invest in the Aggressively Growing Agriculture Sector

If you are interested in agriculture products, you might like the idea of being a part of this industry. Being a start-up you may face some challenges. e.g. whether you want to run a partnership, a sole partnership, or a corporation. What about taking distributorship of agricultural products?

Distribution of farming products and equipment is that opportunity that really pays. Do complete research on the result-oriented industry. We have collected the highlights of this business to provide you ease in choosing your agricultural distribution career.

The agriculture sector is a steady business that shows no sign of fading. Let us accentuate the positives of the agriculture industry, read on:

  • Agriculture is the backbone of the Indian economy.
  • India ranks second in the agriculture sector.
  • Provides food to 1 Billion people.
  • Around 65 % population depends directly on agriculture.
  • It accounts for around 17.4% of India’s GDP.

As a result of progressive steps taken by the Government in agriculture & allied sectors, public investment in Gross Capital Formation in agriculture has been going up. Moving into this agricultural business distributorship is such a rewarding opportunity one should certainly go for. bring you thousands of eminent companies in the agriculture field that are looking for diversification via distribution partner worldwide. Start Investing

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