Question

Lower rate of agricultural mechanization in India is because of
A. Small farm holding
B. Credit unavailability
C. Low awareness
D. High cost of ownership
Choose the correct answer from the options given below:

• A. A and B only
• B. A and C only
• C. B and C only
• D. B and D only

Hint:

Small fragmented landholdings ($>86\%$ SMFs) and credit constraints are the main impediments to individual farm mechanization.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
Structural and socioeconomic bottlenecks constrain farm equipment adoption among Indian smallholders.

Step 2: Detailed Explanation:
1. Small and fragmented landholdings (Statement A): Over $86\%$ of Indian operational holdings belong to small and marginal farmers ($< 2\,\text{ha}$), rendering ownership of heavy agricultural machinery economically unviable.
2. Inadequate institutional credit financing constraints (Statement B): High capital investment requirements coupled with limited access to affordable term loans restrict equipment acquisition.

Step 3: Final Answer:
Therefore, small farm holdings and credit unavailability (A and B only) represent the primary structural reasons.