Custom Hiring Centers in Indian Agriculture: A Comprehensive Review

Agricultural mechanization is central to improving productivity, reducing labour dependence, and enhancing efficiency in India. Despite significant progress, mechanization levels remain relatively low (40-45%), mainly due to fragmented landholdings and the high cost of modern machinery, which makes ownership unaffordable for small and marginal farmers. Custom Hiring Centers (CHCs) have emerged as a practical solution by providing machinery on a rental basis, thereby bridging the affordability gap. This review traces the historical evolution of CHCs, from the introduction of a steam thresher in Punjab in 1912 to their institutionalization under government initiatives such as the Sub-Mission on Agricultural Mechanization (SMAM) and the FARMS mobile app. It highlights their role in lowering cultivation costs, improving farm profitability, and promoting inclusive mechanization. Currently, more than 75,000 CHCs operate across India, reflecting sustained policy support and farmer-led initiatives. However, persistent challenges, such as machinery shortages during peak seasons, limited farmer awareness, high rental charges, and uneven regional distribution, continue to restrict their potential. Knowledge gaps also remain in areas such as gender inclusion, long-term environmental impacts, and equitable access for marginalized groups. Strengthening CHCs will require targeted policy and financial support, infrastructure expansion into underserved regions, capacity building of farmers and operators, and integration of digital technologies for efficient service delivery. Addressing these issues will be crucial to democratizing access to mechanization, supporting rural entrepreneurship, and advancing sustainable agricultural growth in India.