Tractor sales fall 4.6% in August due to erratic rainfall, but exports hold up; festive season respite eyed | The Financial Express

Tractor sales fall 4.6% in August due to erratic rainfall, but exports hold up; festive season respite eyed

The uneven rainfall not only affected the paddy crop production, due to deficient showers, but also other ground and farming activities, owing to heavy downpours in some parts of the country.

Tractor sales fall 4.6% in August due to erratic rainfall, but exports hold up; festive season respite eyed
The ongoing festive season might compensate for the slightly stunted sales numbers, CareEdge said

Tractor sales in India in the month of August fell 2% on-year, and 4.6% from the previous month, due to uneven rainfall and a slow revival of the rural economy. The past few months have seen a skewed rainfall pattern. The uneven rainfall not only affected the paddy crop production, due to deficient showers, but also other ground and farming activities, owing to heavy downpours in some parts of the country. As a result, tractor sales in August took a marginal hit and fell by a few thousand units, according to a recent CareEdge report.

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Tractor sales in India:

  • August 2022: Total 64,809 units, including 52,691 domestic sales
  • July 2022: Total 67,047 units, including 55,211 domestic sales
  • August 2021: Total 65,481 units, including 53,721 domestic sales

However, tractor exports grew marginally at 2.32 percent on a month-on-month basis. The year-on-year export growth was recorded at 3 per cent. The ongoing festive season might compensate for the slightly stunted sales numbers, CareEdge said. Owing to the pickup in demand due to various offers and discounts, the tractor sales are expected to see a marginal jump.

The disturbance in the sowing and crop yield of paddy, which is one of the major crops for Kharif season, has pushed farmers to diversify their fields and switch to sugarcane, mustard, maize, pulses, and others, Edelweiss said in a recent research note. According to the first advance estimates of production of major kharif crops for 2022-23 released by the Ministry of Agriculture and Farmers Welfare on September 21, sugarcane and maize production in the country this year is estimated at record quantities. Maize production was projected at 23.10 million tonnes, which is 3.21 million tonnes higher than last year. Meanwhile, sugarcane production was projected at 465.06 million tonnes, higher than last year by 91.59 million tonnes.

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