Factors affecting tractor growth

• “Potato is the main cash crop  in Mathura and Agra, and since farmers are selling at a loss, most have postponed their plans to replace their old farm machinery or purchase new ones’’
• Concerns regarding  agriculture stress that has also engulfed the tractor industry.
• At least a fifth of the farmers who have bought tractors in Agra are unable to repay their loans. 
• The sliding demand for tractors is not restricted to the potato belt of Uttar Pradesh. Numbers from the Tractor Manufacturers Association showed that domestic sales across India fell by 14.4% between April and July, compared to those the year before. After registering a robust 24% growth in 2017-18, tractor sales slowed down to 7.8% in 2018-19.
• The delay in arrival of monsoon, coupled with deficit rains, dampened farmer sentiment leading to a lull period for the tractor industry
• The June-to-September south-west monsoon, which irrigates nearly half of India’s crop area, witnessed a delayed onset with highly deficient rains in June and early July, the main planting months for rain-fed kharif crops. Following a 28% rainfall deficit between 1 June and 3 July, planting of crops was 26% lower year-on-year.
• By 9 August as the monsoon gained momentum, planting had picked up pace, narrowing the area deficit to 5%.
• Sales of heavy farm machinery like tractors are unlikely to see a recovery till harvesting begins in October, when such equipment is required.