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

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.