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Department of Agricultural Economics, S.V. Agricultural College, ANGRAU, Tirupati-517 502.
Mechanization is vital for enhancing agricultural efficiency and reducing production costs, yet small and marginal farmers face challenges such as high machinery costs and limited landholdings. Community Hiring Centres (CHCs) have emerged as a solution by offering farm machinery on a rental basis. This study, conducted in Chittoor district, Andhra Pradesh, analyzed the operational and economic aspects of CHCs. Data were collected from 30 CHC owners from three mandals: G D Nellore, Kuppam, and Punganur. Investment in CHCs ranged from ₹70,000 in smaller setups to ₹ 12,48,709 in larger Centres, with subsidies reducing costs by 32 per cent. Economic analysis revealed a Benefit-Cost ratio of 1.18, an Internal Rate of Return of 36 per cent, and a Net Present Worth of ₹ 10,51,083 from the CHCs. Payback periods varied from one to six years. Subsidies and diverse machinery ownership enhanced financial viability. Recommendations include optimizing subsidies, raising awareness, and providing technical training to CHC operators to enhance resource utilization and efficiency.
KEYWORDS: Community Hiring Centres (CHCs), Cost-Benefit Analysis, Economic Viability, Investment Pattern, Small and Marginal Farmers.