Monsoon in India weaves magic, sparks sales boom; this is how these customers reacted

By: |
New Delhi | Published: October 16, 2017 12:31:07 PM

Tractor sales are witnessing a good growth as the effect of demonetisation has toned down and the year has witnessed a close-to-normal monsoon

tracter sales, demonetisation, monsoon, news, latest news, business news, India news(Source: PTI)

India may not have got excess rains during the monsoon this time and there may be various pockets across the country that are struggling under deficit precipitation, but overall for the country, the rains have been near normal. This will ensure good news across a spectrum of sectors in the economy and one particular one is already feeling the positive impact. Tractor sales are witnessing a good growth as the effect of demonetisation has toned down and the year has witnessed a close-to-normal monsoon, according to Times of India. This comes on the back of 2 successive drought years (2014 and 2015), and is seen as nothing short of a blessing even though last year saw somewhat better sales than this time will see. Binaifer Jehani, director at the research firm Crisil Research told TOI “This year, we are expecting growth of 11-13%, and sales of 6.45 lakh units.”

Tractor sales were not very badly impacted by the cash crunch in the country due to the demonetisation roll-out in November 2016. The scenario turned even better in the month of August which saw an increase of 34.4 per cent in the sales. September too followed the boom witnessing an increase of 50.2 per cent in the sales, the report added. Coming to the players of the industry, Mahindra & Mahindra, India’s largest tractor maker, registered a sale of 44,000 units in September while Sonalika tractors, sold 50,002 units between April to September.

So what will the rising tractor sales translate to? Economists speculate the farm sector to grow by 3 per cent after last year’s 4.9 per cent growth.

The widespread sentiment in the industry is that impact of demonetisation and drought years have been left behind and growth is back on track.

Follow financialexpress.com for all news and analysis on the Lok Sabha Elections 2019. Check Lok Sabha election 2019 schedule, Lok Sabha Constituency Details and updates on campaigning by Narendra Modi and Rahul Gandhi. Like us on Facebook, follow us on Twitter.

Switch to Hindi Edition