Tractor: 15% Growth in Domestic Tractor Sales
Chandigarh: The domestic tractor sale has boosted by the good monsoon and higher MSPs i.e, minimum support price of crops. During April-June 2016 the tractor industry has registered a 15% growth as compared to the corresponding period previous year.
The total domestic sales during the period under review were 97,597 units as compared to 84,960 units during the corresponding period previous year, according to the Tractor Manufacturers’ Association.
Over 80% of the tractors sold in the domestic market are in the medium HP category, since the domestic tractor market is predominantly dominated by medium horse-power (HP) like 31-50 HP range, says experts. Due to filling up of inventory, April and May usually are higher offtake months. This time there is a stronger double-digit growth seen.
“There is a forecast of good monsoon this year which is likely to steer the industry volumes. Secondly, there has been a modest increase in MSP in the past two years and there are high expectations among the farming community. If both the factors work in favour of farmers, we expect the industry will attain a double-digit growth this year,” said AS Mittal, vice-chairman, International Tractors Ltd and makers of Sonalika tractors.
If monsoon is normal during FY17 then tractor sales will improve gradually in the current fiscal, says credit rating agency ICRA. The government’s steps on rural development, especially on irrigation programmes and farmers’ welfare in the Budget, resulting in tractor sales.