Improving Economic Viability of Farming: A Study of Cooperative Agro Machinery Service Centres in Punjab Sidhu R.S.a,*, Vatta Kamalb aCollege of Basic Sciences and Humanities, Punjab Agricultural University, Ludhiana - 141 004, Punjab bDepartment of Economics and Sociology, Punjab Agricultural University, Ludhiana - 141 004, Punjab *Author for correspondence: Email: sidhurajinder@gmail.com
JEL Classification: O13, O17, O43 Online published on 9 October, 2012. Abstract The study has evaluated the contribution of Cooperative Agro Machinery Service Centres (AMSCs) towards improving the economic viability of farming in Punjab. The study has found the operations of the AMSCs economically viable as the service centres have been generating profits to the extent of 2–30 per cent of the annualized costs. The hiring-in of the machinery services from the machinery centres has been found comparatively cheaper by 16 per cent and 35 per cent when compared to the hiring-in from private operators and self-owning of machinery, respectively. The successful AMSCs have brought a significant reduction in the burden of capital investments of the farmers on farm machinery and implements. The study has highlighted the need to strengthen the existing AMSCs, establish new AMSCs and increase in the government support in the form of subsidies to address the issues of timely non-availability of services during the peak season and to reduce price differentials between AMSCs and private operators. The success of the AMSCs in the state will help in reducing debt-burden of the farmers by bringing down costs of operations and improving economic viability of farming. Top Keywords Agro machinery service centres, custom hiring, economic viability, Punjab agriculture. Top |