Tractor Sales Expected To Show Upswing Despite Pandemic

The demand for tractors is expected to continue in the coming financial year due to high agricultural growth and a rural infra push.
Tractors
Outlook Web Bureau Feb 16, 2021

Tractor industry in India has witnessed strong sales despite the Covid-19 pandemic. While the Coronavirus has affected other sectors, agriculture was not impacted as much.

Data for January 2021 by Tractor and Mechanization Association (TMA) shows altogether production of tractors at 96,020. The total units sold was 87,579, out of which 9,234 were exported.

The demand is expected to continue in the coming financial year due to high agricultural growth and a rural infra push.

Earlier, for January last year, TMA figures indicated a total production of 68,053 tractors, where 59,367 were sold (including 5,980 exports).

The figures for December 2020, depicts production at 91,969, and 71,740 sold (including 10,491 exports).

In India, tractors' registration rose 11.14% on a YoY basis in January to 60,754 units, according to data from the Federation of Automobile Dealers Associations (FADA).

Now thanks to a recent innovation, tractors modified to run on compressed natural gas (CNG) may further add to the sales figure.

Factors

Regarding the sales upswing, reports attribute it to several factors. Among others, it included easier finance options, good monsoon, increased MSP and market rates realization, restoration of channel inventory, higher Kharif and Rabi output, and rural cash flows.

If rising prices of fuel was any impediment, a new modification with diesel tractor running on CNG may address it.

A farmer will be to save more than one lakh rupees annually on fuel costs now, said Union Minister for Road Transport and Highways Nitin Gadkari, launching the first CNG tractor in Delhi last week.

CNG tractor

The conversion from diesel to CNG, carried out by Rawmatt Techno Solutions and Tomasetto Achille India, will render tractors environment friendly. CNG is a clean fuel as it has the lowest content of carbon and other pollutants.

Farmers can save on fuel cost as current diesel prices are hovering around Rs.80/L whereas CNG costs about Rs.42/kg. Also, CNG prices are far more consistent than fluctuating fuel cost.

With zero lead content and being non-corrosive, non-dilutive and non-contaminating, CNG will help in increasing the life of the engine. Overall emissions are reportedly reduced by 70% as compared to diesel.

Further, stubble (parali) can be used as a raw material for producing bio-CNG. Thus, farmers can also earn by selling it to bio-CNG production units.

“An alternative energy model based on clean sources is developing, and this will help in meeting the country's commitment to COP 21 for reduction in pollution,” said Petroleum and Natural Gas and Steel Minister Dharmendra Pradhan earlier.


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