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india sugarcane harvester market

India Sugarcane Harvester Market Share, Size, Trends, Industry Analysis Report By Type (Chopper Harvester, Whole Stalk Harvester); By Swath Width (Single Row, Multiple Row); By Product (Self- Propelled, Tractor Mounted); By Ownership (Owned, Leased/Hired); By Region, Segment Forecast, 2020 - 2026

  • Published Date: Feb 2020
  • Pages: 78
  • Format: PDF
  • Report ID: PM1645
  • Base Year: 2019
  • Historical Data: 2015-2018

Report Summary

The India Sugarcane Harvester Market size was valued at USD 79.61 million in 2018 and is anticipated to grow at a CAGR of 18.1% during the forecast period. Strong government incentives, favorable government policies and initiatives, rising shortage of manual labor and rising presence of key market participants are some of the reasons that are favoring market growth. Inherent advantages of mechanized sugarcane harvesters such as ability to provide consistent and high quality of harvest, high harvesting rate, and operational simplicity are some of the other factors driving market growth.

Rising presence of companies as well as aggressive strategies adopted by them to increase market penetration is a major factor influencing market growth. Companies such as New Holland are entering into agreements as well as collaboration with private and co-operative sugar factories and are encouraging them to implement mechanized sugarcane harvesting under their area of influence. Factories are taking help of manufacturing companies to educate the farmers regarding the benefits of mechanized sugarcane harvesting as well as to change their plantation patterns to suit mechanized harvesting.

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Government subsidies and policies is the other major driver for the overall India sugarcane harvesters’ market. Sugarcane if not harvested on time can lead to heavy losses both to the farmer and sugar factories alike. Shortage of manual labor is further contributing to this scenario. Governments in order to avoid such scenarios offers hefty subsidies on sugarcane harvesting purchase. The subsidies provided by different state governments vary for each individual state. Recently, the cancellation of subsidies created a political stir in the country.

Low awareness regarding the product is a major challenge posed in the overall sugarcane harvester market. States such as Uttar Pradesh top in sugarcane production but have little penetration of sugarcane harvesting. Regional politics revolving around labor & sugar factories, low presence of industry participants, and lack of awareness regarding subsidies have resulted in a low demand from the region. On the other hand, states such as Maharashtra and Tamil Nadu lead the demand for sugarcane harvesters. The primary reasons for the same are well developed ecosystem of co-operative sugar factories, pro-active government policies, and high awareness of government subsidies among others.

The market is primarily segmented on the basis of Type, By Swath Width, Product, By Ownership, and geographic region.

India Sugarcane Harvester Market Report Scope

By Type

By Swath Width

By Product

By Ownership

By Region

  • Chopper Harvester
  • Whole Stalk Harvester
  • Single Row
  • Multiple Row
  • Self- Propelled
  • Tractor mounted
  • Owned
  • Leased / Hired
  • North India
  • South India
  • West India
  • East India

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Type Outlook

The Chopper Harvester segment is projected to grow at a CAGR of 18.4% during the forecast period. Moreover, the chopper has various other advantages as well. Several functions operated by these machineries are bundling, dressing & sizing the cut cane into cane bits, carrying, and gathering & loading the cane bundles into cane trucks. Multi-purpose usage of the equipment will lead to an increase in sales of India sugarcane harvester market during the study period

The whole stalk sugarcane harvester machine is commonly used where canes are standing erect and also due to low cane deterioration rate as compared to cane billets. It has low cane deterioration rate due to limited cutting area exposed to atmosphere thereby decreasing the chances of organisms entering the stalk. These factors will result in enhancing the revenue generation of whole stalk harvester market over the next few years.

Swath Width Outlook

Single row sugarcane harvester segment is expected to witness the fastest growth over the forecast period. The product offers superior cost benefit as compared to the conventional model. Also, the maintenance of the single row is comparatively easy and the parts are easily available. Streamlining of the product’s preventive maintenance in order to ensure high productivity of harvester by companies is expected to drive the product demand.

Multirow type have relatively low potential for growth over the forecast time-frame. The multiple row harvester is capable of harvesting sugarcane at different row spacing. Also, this space can be adjusted as per the row space as required by the farmer. Higher productivity offered by the product is expected to drive the multi row segment over the forecast time-frame.

Product Outlook

On the basis of product, the market has been segmented into self-propelled and tractor mounted. Self-propelled market segment is expected to grow at an estimated CAGR of 18.2% over the forecast period. Self-propelled harvesters are easy to use, are more efficient and can work on adverse climatic and soil conditions. Their operations and working are comparatively easy. Industry participants also promote them through aggressive marketing strategies. However, Shrijee Group has developed indigenous tractor mounted harvester and is seeking investor to promote the same.

Significant investments have been done for the development of self-propelled type in the past few years. These technological innovations offer high productivity, efficient fuel consumption, better operation, effective in harsh conditions, greater comfort, maintenance, etc. Moreover, the recent equipment is incorporated with smart cruise intelligent engine supporting in optimizing fuel usage. Therefore, advancements in self-propelled sugarcane harvesters will influence business revenue.

Ownership Outlook

Increasing trend for mechanized harvesting is benefiting the equipment market growth. The government is promoting the concept of hiring where the expensive equipment is offered on lease or hire basis. The concept involves agricultural equipment as a part ‘Farming as a Service’ (FaaS). This involves offering easy access to farmer for the required machinery ensuring high yield and boosting overall agricultural productivity, this also involves offering sugarcane harvesters to farmers on lease. Under Custom Hiring Centers concept minimum one per gram panchayat or one per village meeting the required demand is fulfilled by providing machineries on rent.

In India, the number of small farms owned are comparatively higher than ownership of larger farms. This gives high potential for improving market share for leased or hired sugarcane harvesters. In addition, the leasing facility can generate higher profit as these machineries will not be a dead investment and can reduce the payback period for the harvesters. All the above factors are expected to drive the leased market segment demand over the coming years.

Regional Outlook

The North India market is projected to grow at a CAGR of 17.0% during the forecast period. Among various states, Karnataka and Tamil Nadu are the one taking essential steps towards adoption of automated product. This mechanized harvesting will witness higher adoption rate with Government initiatives engaged in promoting the concept customized hiring services, where agriculture equipment purchased by entrepreneurs are offered on a rental basis. Tamil Nadu incurs an average cost in the range of INR 6.3 to 10.5 per ton, with higher costs in summer season due to low availability of skilled labors. These factors will considerably contribute in the growth of sales in the region.

Continuous support from the state as well as central government will significantly support in boosting sales and lease revenue of sugarcane harvesters during the forecast period. For instance, there are various agriculture state schemes engaged in promoting the use of advanced technology, capital investment and farm mechanization, etc.

Competitive Landscape

Right pricing is a critical success factor in the overall market. As is evident from the market estimates and forecasts, the price of the overall product is bound to witness a steep decline in the near future. Major international participants such as New Holland have established their manufacturing base in India and are manufacturing the product in the country. This has enabled the company to significantly decrease their manufacturing costs. Indigenously developed product such as the Shaktiman is rapidly gaining traction due to its low costs. The introduction of Shaktiman has had significant impact on the overall pricing strategies adopted by key industry participants.

Companies such as New Holland Fiat (India) Pvt. Ltd. (CNHI), Tirth Agro Technology Private Limited, Team Commotrade (India) Private Limited, Deere & Company (John Deere India Pvt. Ltd.)  are some of the key players operating in the Indian market. Pricing is a key success factor in the market and with the introduction of indigenously developed products, the overall prices of the product are bound to decrease thus forcing companies to further optimize their value chain to maintain steady revenue stream.

Key Take-Away
Polaris Market Research
India Sugarcane Harvester Market Size | Industry Report, 2020-2026