TAFE launches tractor rental app
With the help of this application, in the last season, 16,000 farmers earned an additional income of about Rs 10,000 each.
The application works as an interface between farmers who want to hire and those who want to let out equipment. To help users, TAFE has put in place a 200-persons-strong support system which includes a call centre.
According to TAFE president TR Kesavan, the digital application has helped over 16,000 farmers in Madhya Pradesh rent tractors at a rate of about Rs 600 an hour. These farmers together earned Rs 15 crore in the full last season by deploying tractors for 265,000 hours, Kesavan told ET on Friday.
The company said it has taken up this project as corporate social responsibility (CSR) activity and doesn’t want to turn it into a profitable model. “Currently, there are about 45 lakh tractors in India and they’re grossly under-utilised. They are used mostly 10,000 to 15,000 hours in a year,” Kesavan said.
TAFE wants to play a facilitator to marginal farmers. With the help of this application, in the last season, 16,000 farmers earned an additional income of about Rs 10,000 each.
The company is working closely with the government to help farmers avail of this opportunity, and it is already working in seven states and is likely to expand across India by the end of this financial year.
“Even if 10% of the total 45 lakh farmers with tractors become part of this, we expect that the farmers can generate business worth Rs 421 crore,” Kesavan said. TAFE is collaborating with state governments of Bihar, Odisha, Andhra Pradesh, Karnataka, Tamil, Nadu and Assam to launch JFarm. Kesavan said the demand for tractors will continue to grow on the back of state subsidy and loan waiver schemes. “We expect tractor sales to grow 15% while in the next three years, they will grow at CAGR of 7%,” he said.