Market Trends of Asia-Pacific Irrigation Machinery Industry
This section covers the major market trends shaping the APAC Agricultural Irrigation Machinery Market according to our research experts:
Subsidies by the Governments and Support from the Financial Institutions
Government organizations are promoting micro-irrigation systems in various countries, in order to encourage farmers to adopt advanced irrigation technologies, by providing various benefits or subsidies to farmers. The governments of the Asian countries are taking special measures to promote advanced irrigation systems in their countries. During the study period, CI-Agriculture, an Indonesian start-up has taken up the task of educating the farmers about the benefits of advanced irrigation systems which can improve yield and efficiency.
The Indian government approved initial aggregation of USD 702.3 million for setting up micro-irrigation Fund (MIF) in May 2018, along with the National Bank for Agriculture and Rural Development (NABARD). This fund is registered under the Pradhan Mantri Krishi Sinchayee Yojna (PMKSY), which was formulated on July 1, 2015. The primary objective of the scheme is to promote micro-irrigation technologies, primarily among consuming crops, like cotton and sugarcane.
Furthermore, it is focusing on expanding the coverage of field crops under micro-irrigation technologies. Moreover, the central government offered a 35% to 45% subsidy for drip irrigation systems. This is expected to strengthen the market.
Concerns Surrounding Water Scarcity
The irrigation machinery market is primarily driven by factors, such as the need for increasing crop productivity while addressing the issues of water scarcity. Thus, governments are focusing on formulating initiatives, to increase the usage of micro-irrigation systems, while limiting water shortage. The Indian Agricultural Research Institute (IARI) established the design of a micro-irrigation system (DOMIS), a web-based application system that helps in designing customized micro-irrigation systems for efficient water utilization, under several agro-climatic conditions. Furthermore, it is planning to develop devices that utilize low amounts of water, in order to help farms.
In India, owing to recurring droughts in 2012, 2015, and 2016, micro-irrigation systems gained immense popularity. Therefore, both central and state governments are promoting micro-irrigation systems, in order to tackle the water crisis which both the Drip as well as Sprinkler irrigation resolves.
