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| Karnal agri implements cluster faces tough time |
| Komal Amit Gera / New Delhi/ Chandigarh Sep 18, 2009, 00:22 IST |
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One of the largest agricultural implement cluster in north India at Karnal is likely to be affected by the delayed and scanty rainfall.
The Karnal-based units meet the major requirement of the country for various types of power driven and bullock driven agri implements, including harrow disc, tiller tyne, seed drilling machine, zero tillage leveler, agri springs and laser guided scraper buckets. The entrepreneurs are worried that the repercussions of this year’s monsoon would be felt in the next kharif crop as the demand in the drought-affected areas would be affected.
Major units which are into exports are already battling the slowdown in the world economy as their business have been hit by almost 50 per cent in value.
In the past few years, some of the larger players forayed into exports and created a room for the new units, mainly small and micro outfits, to cater to the domestic market.
The cluster has over 100 micro, small and medium units and provides employment to about 5,000 people.
Talking to Business Standard, Karnal Agriculture Implements Manufacturers Association president Rajender Rajpal said Karnal met about 80 per cent of the demand for agri implements for the domestic market and almost 95 per cent for the export market.
He said Karnal had been picked up for the cluster development programme of the Centre. Setting up of a common facility centre was their topmost agenda, he added.
He said the Karnal industry was lagging behind in the international market due to inefficient shop floor practices and acute lack of process automation.
Most of the outfits are now planning to go for cost cutting and innovative technology to retain their market share. Ravi Berry of Berry Udyog Private Limited and President of Agrim Entrepreneurship Club, Karnal, said they, in collaboration with the Small Industries and Investment Institute, met representatives from different departments to exchange information on current trends. “We are also contemplating arranging faculty to update our members on global best practices”.
Berry exports about 40 per cent of his total output direct and indirect channels (indirect exports are done through merchandise exporters and tractor manufacturers).
Despite the slack demand in the global market, the entrepreneurs are engaged in doing ground work to access new markets. Some of the players are exploring export opportunities in African countries as they are aggressively implementing mechanisation.
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