Under the scheme, any farmer who owns an Eicher tractor, can become a member of the Kisan Club for one year by paying Rs 125 or opt for lifelong membership for Rs 500.

In return, the farmer can avail of attractive discounts on his annual spares bill. According to the discount slabs, a farmer spending Rs 2,000 and above on Eicher spares can claim a 4 per cent discount, while the other slabs are: Rs 4000 and above (discount: 5 per cent); Rs 6,000 and above (6 per cent); Rs 8,000 and above (7 per cent); and Rs 10,000 and above (10 per cent).

The Kisan Club members will also get a 50 per cent discount on all labourcosts if the repair or maintenance is undertaken at an authorised Eicher service centre.

Managed primarily by Eicher dealers at the grass-root level, the scheme will also require dealerships to host events and get-togethers for club members and assist in relationship-building with the local farmers.The Kisan Club will also extend credit to farmers, on spares purchases, at: zero-interest for 15 days, 10 per cent for 90 days, and 16 per cent for more than 90 days.

To monitor the scheme, each Kisan Club member is given a passbook which maintains a record of the spares sales in terms of date, bill number, amount, down payment, and outstandings.

According to Ramesh C Jain, managing director, Eicher Tractors, one major spur for starting the Kisan Club was the growing grey market for tractor spares. Says Jain: ``We want the farmer to buy genuine Eicher spares. Therefore, the scheme has been designed in such a way, that he will be motivated to come again and again to Eicher for all spares and thus earn moreand more discounts.''

For example: the discount is not offered immediately on the purchase of spares, but once every three months. This way, the company wants to ensure that even for a small spare purchase, the farmer returns to the authorised Eicher dealer -- instead of turning to the cheaper or more conveniently-located grey market supplier.

The initiative is also significant for Eicher Tractors in terms of the business potential of the spares market. In 1998-99, at Rs 25 crore, spares accounted for five per cent of the total turnover of Eicher Tractors. The company now aims to take up the turnover contribution of spares to Rs 30 crore in 1999-2000. Eicher's current tractor base is more than 3.5 lakh -- and if the print order of the pass books is any indication--Eicher expects atleast 20,000 farmers to sign up for the Club this year.