Entrepreneurship in Custom Hiring of

Agricultural Implements & Machinery

INTRODUCTION
 Assam is one of the under developed regions
of the country. Like in other sectors, the
state is also lagging behind in the
agricultural sector. Though Assam is gifted
by enormous natural resources and crop
production is the major agricultural activity
here, but these resources are not being fully
utilized due to inadequacy of critical farm
inputs. This has resulted lower level of
production and productivity in Assam. This
has been reported several times in the past.
Need for farm mechanization
The chief causes of low agricultural productivity in
Assam are reported to be due to lower level of
critical inputs including power availability.
The potentiality of agricultural sector to generate
employment has been realized in Assam in recent
past. Appropriate mechanization is must for
Agricultural development and employment
generation in Assam. Custom hiring service of farm
machinery, particularly the high capacity farm
machinery has a big role to play in near future.
The basic knowledge on farm mechanization is
required for operating a farm machinery custom
hiring service.
Different aspect of farm mechanization with
reference to the state of Assam.
 AGRICULTURAL MECHANIZATION
 Definition
 Use of improved tools/implements/machines for farm operations in
order to

 • improve the quality of work

 • Maintain timeliness of operations

 • Reduce drudgery

 • Reduce cost of operations

 • Maintain environmental sustainability

Details of the business plan of custom
hiring services of agricultural machinery
and implements
 The name of the company is – T.D. Pvt.
Ltd. Co.
 Estimated project cost is Rs.5 lacks
Objects of the project

1.Increasing cropping intensity through profitable crops

selection.
2.Examination of technical and economic viability is
essential criteria.
community use C
multi-use M &
regular repair & maintenance R
CMR is machine specific and it can reduce the cost of
operation.
3.Deciding why to use the new technology :
to reduce drudgery R
to grain more profit G
To protect natural resources P.
4.Critical selection of the farm machinery on the
basis of
amount and nature of work
performance test results
availability of spare parts
repair maintenance facility.
5.Tractor, power tiller IC engine procurement
from reputed manufacturers strictly on the basis
of performance test results.
6.Developing farm machinery manufacturing
units locally and ensure quality production.
Modification of the existing machinery may
also be needed to suit local conditions.
7.Developing agro-processing units locally for
value addition of the agricultural produce.
CONSIDERATION FOR CUSTOM HIRING SERVICE
OF FARM IMPLEMENTS

- Selection of machinery
○ Size
○ Make

- Care and maintenance

○ As per manufacturer recommendation
○ Lubrication
○ Rust prevention
○ Tightening of nut-bolts
○ Attention for belts, bearings
○ Cooling
- Economic analysis
○ Cost per unit of work
○ Fixed cost (does not depend upon the hour of use)
♣ Depreciation
♣ Interest on investment
♣ Insurances
♣ Taxes
♣ Housing
○ Variable cost (depends upon the use hour)
♣ Repair and maintenance cost
♣ Fuel cost
♣ Lubrication cost
♣ Labor cost
- Monitoring machines performance
○ Rate of work done
♣ Effective field capacity
♣ Theoretical field capacity
♣ Field efficiency
○ Rate of fuel consumption

- Other considerations
○ Spare parts stock
○ Optimum load
○ Optimum operating conditions
○ Consult field performance data of a commercial
tractor
Basic cost estimation
Particulars Amount (In Rs.)
1.FIXED COST 1,50,000
Depreciation Rs30000
Interest on investment Rs15000
Insurances Rs25000
Taxes Rs10000
Housing Rs20000
2.VARIABLE COST 1,50,000
Repair and maintenance cost
Rs50000
Fuel cost Rs30000
Lubrication cost Rs15000
Labor cost Rs 55000
TOTAL 3,00,000