Karnataka govt. starts on-demand rentals of tractors

The Government of Karnataka has adopted the Uber model for agricultural services - for providing tractors and other farm equipment to the state's farmers. The state government plans to overcome the problem of shortage of labour for farmers with this move.

According to the government, farmers in Karnataka have been complaining of non-availability of labour. The state is investing Rs. 175 crore in the scheme under which, farmers will be able to rent equipment over a period of three years. The government pays 75% of the capital cost and manufacturers earn money by renting the equipment to the farmers. Officials are of the opinion that by adopting this method, cost to farmers would come down by nearly a third.

The state government has tied up with manufacturers such as John Deere and Mahindra & Mahindra to supply farm equipment on demand to farmers across the state. Most of the farmers own small pieces of land and find it difficult to justify investment in equipment. Hiring machinery will not put a heavy financial burden on them.

Earlier this month, Mahindra introduced Trringo - a tractor and farm equipment rental service (click here to read report). 

Source: Business Standard