Indian Tractors In High Demand, Huge Rise In Exports

Agriculture is one of India’s most important economic sectors, almost 58 percent of the country's workforce depends on it for their livelihood. Approximately 17.8 percent of India’s GVA (Gross Value Added) comes from this sector. That is why agriculture offers many opportunities to the industries related to it and Farm machinery or equipment is one of them. Recently, the Ministry of Agriculture and Farmers Welfare released information that there is a huge rise and high demand in India’s Export of tractors in 2022-2023. The tweet reads, “India has witnessed huge demands across the globe for tractors increasing in the export of Indian tractors in the financial year 2022-2023.” It suggested that in the financial year 2013-14 the tractor market was Rs. 2270 Cr and in 2022-23 it is Rs.6624 Cr.

A tractor is essential in agricultural as well as commercial fields. Globally, India constitutes 10 percent of the tractor market and it is increasing day by day. In India, 80 percent of the total industry is a tractorised market and globally it is 38 percent of the entire industry. Tractor sales have beaten estimates this year and touched record highs on improving sentiment.

Sales and Reports:-

One of the largest tractor brands in India, Mahindra and Mahindra saw around 11 percent year-on-year rise in sales to nearly 52,000 units in the month. The famous brand Escorts Kubota whose average sales from January to October 2022 was around 8,688.7 units also made a record and sold 14,500 units in October only. The average sales of Escorts Kubota have been 13,632 units over the past 5 years.

Talking about the performance, Hemant Sikka, President of - Farm Equipment Sector, Mahindra & Mahindra Ltd. said, “We have sold 50,539 tractors in the domestic market during October 2022, a growth of 11 percent over last year. The festive season kept the spirits high and led to very strong momentum in demand for tractors and farm machinery. The recent government announcement of higher MSP for key Rabi crops, the good moisture content in the soil, high reservoir levels, and good progress in sowing for Rabi crops are all positives for continued good demand for tractors in the coming months. In the exports market, we have sold 1,455 tractors.”

Mechanization in agriculture has grown steadily in the past thirty years due to affordability and accessibility. Harish Chavan, CEO (Swaraj Division), M&M Ltd said, “The Indian tractor market is pegged at around Rs 39,000 crore- 10 percent of global industry. And the farm-machinery market is around Rs 7000 crore, 1 percent of the global industry.”

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Escorts November 2022 Sales Increased By 11.9 Percent