If you thought discounts and offers are restricted only to cars, think again. The slump in the tractor industry in the last fiscal has forced major players to come up with promotional schemes that can boost demand. This is more pronounced as the harvest season is about to end and there is abundant cash available with Indian farmers to buy a tractor.

According to figures released by Tractor Manufacturer Association, the total tractor industry witnessed a dip of 1.78% in 2007-08 at 3,46,501 units as compared to 3,52,781 units in 2006-07. No wonder, this fiscal has started on a big note for tractor buyers with companies offering high insurance cover and huge discounts. For instance, Escorts Ltd is offering an insurance cover ranging from Rs 3 lakh to Rs 7 lakh to all its buyers who have purchased any brand of Escort tractor from May onwards.

?The offer is aimed at creating a bond with customers and gradually it results in attracting buyers towards the company in a positive manner,? says Rohtash Mal, executive director and CEO, Escorts Agri Machinery Group. The company, which had witnessed a dip of 6.02% in sales in 2007-08 at 47,213 units vis-?-vis 50,236 units in 2006-07, is eyeing a growth of 4-5% this fiscal.

?Agriculture is growing and so is the money in the hands of the farmers. As such our current focus is to attract customers who are willing to go in for a cash purchase of tractor. Hence, for May and June, we are offering discounts in the range of Rs 15,000 to Rs 20,000 to people who are buying tractors in cash,? says Sunil Dhadiwal, general manager (sales), Force Motors. Force Motors witnessed a decline of 45.77% at 2,092 units in 2007-08 as compared to the cumulative sales of 3,858 tractors in 2006-07.

Agrees a senior executive at Tractors and Farms Equipment Ltd. ?This is the time of the year when farmers have high disposable income. Consequently promotional offers help the prospective buyers to pre pone their purchase,? he says. TAFE group had witnessed a decline of 1.6% in the last fiscal at 78,847 units as compared to 80,134 units in2006-07.