Last month, most tractor manufacturers reported good sales. They see demand increasing in the coming months as the expected good harvest around that time will give farmers more funds to purchase farm equipment. The August-November period accounts for about 45% of the tractors sold in the country every year.
“The rural market is growing and farmers are expecting good returns in the coming months when the harvest will begin,” said TR Kesavan, president of Tractor Manufacturers’ Association. “We expect good sales in western India during the Ganesh Chaturthi puja and in the north during Navratras and Diwali. Almost all manufacturers were running units to full capacity."
In July, the domestic tractor industry recorded 38% growth from a year ago, Kesavan said.
Lakshman Das Mittal, chairman of Sonalika Group, said coronavirus had no major impact in rural areas and demand is higher than the previous year. “In June and July, sales have been very good and I expect to see a 25% increase in sales in the coming three months over the previous year,” he said. “The liberalised loans scheme and higher rural spending by the government has led to good cash flow to farmers.”
Anil Menon, head of market development, CLAAS Agricultural Machinery, said good monsoon rains and enough water in the country’s reservoirs have boosted sentiment of farmers.
“The forthcoming festive season and improved income of farmers because of higher crop prices will certainly push the demand up,” he said. “This time is also relevant to our business as kharif harvest happens during the same period. If things go as per plan, we should be doing quite well in this quarter.”
Menon said he is hopeful that with lockdown easing out in the current quarter, supply chain issues will be resolved, allowing full use of production facility.
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1 Comment on this Story
Vishwanath Ck157 days ago
ONLY TRACTOR COMPANIES RECORDING SALES DURING PANDEMIC AMONG THE CV SEGMENT