Economic analysis of custom hiring centres in Vijayapur district: Viability & impact

Farm mechanization is essential for improving land productivity by facilitating timely, precise agricultural operations, minimizing crop loss, enhancing labor efficiency, and elevating farm work quality. Yet, small and marginal farmers often face financial constraints that prevent them from acquiring necessary equipment. Given agriculture's dual role as both a contributor to and a victim of climate change, it must adapt without exacerbating environmental issues, which has altered agricultural development priorities. CHCs support farmers by addressing labor shortages, ensuring efficient operations, and increasing yields through cost-sharing arrangements. The present study, employing an ex-post facto research design, focuses on the Vijayapur district of Karnataka. It involves a purposive selection of five hoblis with seven CHCs, surveying 140 respondents along with the CHSC operators regarding the operation and functioning of the respective CHSCs. The study revealed that Hoovin Hippargi has proven to be the most financially successful center, achieving the highest profit margin within the district. The research aims to assess the financial performance and operational viability of CHSCs in the research area, ultimately assessing their cost-effectiveness for farmers and the hosting institution (NGO), and benchmarking their performance against other regions. It also seeks to provide insights for policy-making and strategic planning while exploring the role of CHSCs in promoting sustainable agricultural practices.