The small tractor will be launched across the country in April next year and have a price tag of about Rs 95,000, company sources said.

The power tiller, fitted with a 4.3 horse power four-stroke engine, will virtually be able to do all kind of work that a big tractor can perform, sources told PTI.

For sourcing engine technology, Greaves has entered into an agreement with a Chinese company Chang Chai and has also entered into an alliance with Dangfeng Agricultural Machinery Group Corporation for manufacturing rest of the machinery and body of the power tiller.

These power tillers are suitable for small and marginal farmers for jobs such as cultivation of paddy, various crops, orchards, tea/coffee gardens, horticulture and sugarcane besides undertaking other activities such astransportation and stone cutting, sources said.

Central and state governments grant heavy subsidies on these equipment (tillers), making the product more affordable and attractive, they said. Though Greaves is at present importing the whole product and selling it in the market through its dealer network, it is not able to meet the market demand.

The few players in this market segment include Kerala Industrial Marketing Corporation (KAMCO) and Maharashtra Agro Industries Corporation and there is ample scope for new entrants to tap the growing demand, sources said.

Greaves Ltd expects good business keeping in view the low price of the power tillers and government subsidy, which is upto Rs 30,000 in some cases, they added.

Fuel consumption of the product would be much lower than a big tractor as it would consume 1.6 litres of diesel per hour as compared to four litre oil consumption by a 50 horse power tractor.

The company has plans for undertaking complete production including all parts, in India,sources said adding it will be manufacturing the engine at its Aurangabad plant.

Though the company does not expect any price reduction in the initial phases, it did not rule out a price fall once sales volume increases, sources added.