Economic viability of agro machinery service centers established by the Primary Agricultural Cooperative Societies in Punjab


Dharvinder Singh, Jasdev Singh and Sanjay Kumar



Indian Journal of Economics and Development
Year : 2015, Volume : 11, Issue : 3
First page : ( 743) Last page : ( 750)
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.5958/2322-0430.2015.00081.5

Economic viability of agro machinery service centers established by the primary agriculturalco-operative societies in Punjab

Singh Dharvinder, Singh Jasdev, Kumar Sanjay
Project Coordinator and Agricultural Economists, Department of Economics and Sociology, Punjab Agricultural University, Ludhiana-141004. Email:

JEL Classification: O13, O17, O43

Online published on 6 August, 2015.

Mechanization has contributed significantly in the development of agricultural economy of Punjab. However, it also resulted into significant increase in fixed costs endangering the economic viability of farming, especially in the case of small and marginal farmers. In order to provide farm machines on custom hire basis to the farmers, the Punjab Government has encouraged the Primary Agricultural Cooperative Societies (PACSs) to establish the Agro Machinery Services Centres (AMSCs). However, economic viability of AMSCs is very important to ensure the sustainability of their services in the long run. The results revealed that on average the net returns of the selected AMSCs were although positive but insignificant. For the benefit of farm economy as well as for viability of these centers there is need to increase the volume of business of AMSCs through proper choice of machines as well as by encouraging the farmers to avail the services from these centers. The present investigation highlighted number of problems in running of AMSCs which need to be addressed for their sustainability in the long-run.