New Delhi: Two consecutive years of good rains and crop loan waivers in key states will push tractors sales to a record high in 2017-18, Crisil said in a note on Tuesday.
Sales of tractors, seen as a barometer of rural demand, may touch a new peak of 650,000 units in 2017-18, about 12% higher than the 580,000 units sold in 2016-17, the ratings agency said.
Tractor sales rose 18% in 2016-17 (year-on-year), helped by a normal monsoon, underscoring the strong correlation between rains and tractor makers’ fortunes.
The June-to-September south-west monsoon, which irrigates more than half of India’s crop area, has so far seen surplus rains of 2% compared to the normal or 50-year average. According to Crisil, sales of tractors fell by 10% in 2015-16, when rains were sub-par.
“Farm loan waivers in states such as Maharashtra, Punjab, and Uttar Pradesh which account for more than a quarter of the domestic tractor sales—plus the fact that other states could follow suit—will put money in the hands of the farmers,” Crisil’s note said. Read more
Sales of tractors, seen as a barometer of rural demand, may touch a new peak of 650,000 units in 2017-18, about 12% higher than the 580,000 units sold in 2016-17, the ratings agency said.
Tractor sales rose 18% in 2016-17 (year-on-year), helped by a normal monsoon, underscoring the strong correlation between rains and tractor makers’ fortunes.
The June-to-September south-west monsoon, which irrigates more than half of India’s crop area, has so far seen surplus rains of 2% compared to the normal or 50-year average. According to Crisil, sales of tractors fell by 10% in 2015-16, when rains were sub-par.
“Farm loan waivers in states such as Maharashtra, Punjab, and Uttar Pradesh which account for more than a quarter of the domestic tractor sales—plus the fact that other states could follow suit—will put money in the hands of the farmers,” Crisil’s note said. Read more