Bridging the Gap: Assessing the equity implications of agricultural mechanization in India
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Asian Development Bank Institute
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This study examines differential levels and impacts of agricultural mechanization using a multidimensional vulnerability indicator that incorporates farm size, caste group, market access, and marketable surplus. Using household data from more than 6,000 farmers across four states, we find that while mechanization generally improves land productivity, the benefits are not equally distributed. Extremely marginalized farmers, particularly from SC and ST groups, do not register significant yield gains and face adverse labor-displacement risks. These findings suggest that, in the absence of complementary policies, technological progress in mechanization can perpetuate or
exacerbate existing socio-economic inequalities.
Policy design should therefore prioritize inclusive, scale-appropriate mechanization that addresses intersecting constraints, rather than focusing solely on farm size. First, research, development, and dissemination should focus on technologies suited to small, fragmented, and irregular plots, with an emphasis on timeliness, reliability, and maintenance requirements. Second, rental and service markets should be strengthened through professionalized providers, transparent pricing, and improved local availability, including cooperative or community-based models that reduce fixed costs and barriers to access. Third, extension systems—particularly agricultural universities and Krishi Vigyan Kendras—should expand training on equipment choice, safe operation, and maintenance, and improve information flows on service availability and scheduling. Fourth, skills development and transition assistance are needed for workers most likely to be displaced, including targeted upskilling for machinery operation, repair, and allied
rural nonfarm activities. The use of digital platforms to coordinate on- demand services, payments, and routing can lower transaction costs and improve timeliness. However, such tools should be evaluated for their distributional effects to ensure they do not exclude the least connected farmers.
Palabras clave
agricultural mechanization, smallholders, farm size, economic inequality, vulnerability, crop yield, labour, agricultural extension, rural development, digital technology