Reportedly, the demand for tractors in domestic market is expected to touch the 8.6 lac mark before the end of 2015. A study said that the surged money supply in rural system has increased the liquidity of farmers, through which they can now spend more on their occupation. Currently, the demand for tractors is around 5 lacs in India, which is expected to increase by around 2.6 lac units.
Elaborating the statement, the Secretary General of Assocham, D S Rawat quoted, “Rising rural liquidity together with high disposable income of farmers due to government social schemes like Mahatma Gandhi National Rural Employment Guarantee Act are collectively contributing to growth of tractor industry which has provided necessary push for greater farm mechanisation.”
He further said that the tractors has a wide array of applications, including in non farm activities like construction and infrastructure projects, haulage, transportation and improved crop realisation by using top Minimum Support Prices (MSPs). All these activities have together increased the demand for tractors in Indian automotive market.
Reportedly, North India has recorded the highest sales of tractors by amounting for almost 55 per cent of the total sales, which was then followed by Western states that recorded 24 per cent sales. There come Southern states wherein 15 per cent of the total tractor sales were recorded and the lowest 6 per cent sales were recorded in Eastern India. Analysts believe that this surge was mainly observed because of several easy tractor loans offered by financial banks, which is accompanied by modern credit delivery scheme like Kisan Credit Card.
