As the Northern states of Punjab and Haryana are facing monsoon deficit, tractor sales in the states are expected to remain almost flat in the current fiscal. Both the states contribute 11.5% to the country’s total tractor sales of 6.35 lakh units.
The states do not depend much on monsoon, but the delayed rains affect customers’ sentiments. Farmers’ input cost also goes up and lowers profit from the crop which in turn affects their cash flow.
In 2013, there was 7-8% growth of tractors in the two states, and marketers are of the view that this can be flat this time or it may grow by 1 to 2%.
Punjab and Haryana have experienced patchy rains this monsoon so far with deficit remaining 65% each. To deal with the weather-driven crisis, the states have sought special package of Rs 2,330 crore and Rs 4,829.25 crore, respectively from the Centre .
Marketers believe that said the country’s tractor industry is projected to grow by 5-6% in terms of sales volume this fiscal as against 12% growth witnessed in previous financial year.