Electric tractors for electrifying agriculture

Climate change is an issue of utmost importance that the world is currently facing and it is a challenge that is complex and multifaceted. Particularly the agriculture sector is vulnerable, as greenhouse gas emissions are being released into the atmosphere, causing extreme weather conditions such as heat waves and floods. This is directly impacting crop productivity and farmers’ livelihoods, which is a significant threat to global food security.

Electric tractors are one of the globally emerging excellent alternatives for future farming. It can reduce farming costs and zero emissions effectively addressing the issue of a sustainable environment and reducing our dependence on imports of crude oil.

The Ministry of Heavy Industries has recently proposed the FAME-3 scheme, which has an outlay of Rs 12,600. The scheme is expected to be implemented after the Lok Sabha elections. Farmers are hoping that the scheme will include electric tractors, which will reduce their costs significantly. With a subsidy of up to Rs 2.4 lakh (capped at 40 per cent of the tractor’s base price), the burden of high purchasing costs on farmers will be greatly reduced.

To promote the use of electric vehicles, several States such as Kerala, Tamil Nadu and Madhya Pradesh offer concessions or a waiver on the road tax between 50 per cent and 100 per cent.

 Investing in charging infrastructure for electric tractors, especially in rural areas, is crucial for the rural economy to meet India’s development goals by 2047.

Currently, most tractors used in India are powered by diesel, which accounts for approximately 7.4 per cent of the country’s annual diesel consumption, equivalent to the amount consumed by buses. While incentives have been introduced to encourage the electrification of buses, no such incentives have been introduced for tractors. The adoption of electric tractors presents some challenges, such as the initial cost, infrastructure development and promoting their use among farmers. Diesel-powered machinery, notably tractors, accounts for approximately 12-15 per cent of the total cost of agricultural production, which varies by crop type and geographical region. However, electric tractors have many advantages, including zero-emission and a reduction in fuel and maintenance costs due to having fewer moving parts.

According to a study by the Indian Agricultural Research Institute (IARI), electric tractors could reduce maintenance costs by up to 40 per cent over their lifetime, providing a more reliable, environment friendly and cost-effective option for farmers…Central and State-level incentives would send a positive signal to the industry to invest more in zero-emission tractors. Additionally, this aligns with India’s goal of improving air quality and energy security and has the potential to boost India’s tractor exports. Countries such as the US, Europe, Japan and Canada have implemented strict regulations for tractor emissions and have expressed interest in decarbonising farm machinery.

The global electric tractor market is projected to grow from USD 0.7 billion in 2024 to USD 3.4 billion by 2030, presenting a strategic opportunity for India to leverage its manufacturing capabilities. It can enhance its economic competitiveness, play a pivotal role in achieving net-zero emissions, strengthen the rural economy and shape a sustainable and resilient farm future.

The Author is Vice-Chairman of Sonalika ITL Group, Vice-Chairman of the Punjab Economic Policy and Planning Board, Chairman of ASSOCHAM Northern Region Development Council and President of Tractor and Mechanisation Association (TMA). Views expressed are personal.