A buoyancy in the agri economy and government’s favourable farm credit policy have brought about a turnaround in tractor sales which had registered a negative growth rate of 4.5 per cent at the end of fiscal 2008. In the first two months of this fiscal, the sales have grown at an astonishing 15 per cent. Last fiscal, 3,02,241 tractors were sold in India as compared to 3,18,328 tractors in 2007. In the first two months of this fiscal, 52,504 tractors have been sold, as compared to 45,793 tractors in May and June of last fiscal. It is worth noting that about two weeks back, the government had issued revised estimates of GDP growth. The projections were increased from 9 per cent from earlier 8.7 per cent primarily due to a growth rate of 4.5 per cent witnessed in agriculture sector which had grown only at 2.6per cent in the previous fiscal.With a total share of around 30 per cent, M&M is the market leader of tractors in India. Anjani Kumar Choudhary, President, Farm Equipment Sector, Mahindra and Mahindra says, “ This can be attributed to overall growth in agriculture sector and a favourable rural credit policy of the government of India. The government apportioned a sum of Rs 2.80 lakh crore for rural credit. This is a huge sum for a country where 97 per cent of tractors are purchased through finance schemes.” To make the most of the situation, the company has now introduced its own on the spot loan scheme for purchase of tractors in eight different states for a one-month period. The increase in sales isn’t restricted to big players like M&M and Escorts. Punjab Tractors Limited, which occupies 9 per cent share of total market, has witnessed an increase of 79.4 per cent in the tractor sales for the first two months of this fiscal.
