Tractor sales plunge depicts muted rural demand recovery

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This year, irregular rainfall has affected tractor sales. During October, 2023, there has been a 5% decrease in tractor sales across the country. In October, 2023, a total of 1.17 lakh tractors were sold, whereas, in year ago period, this number was over 1.23 lakh. There is also a shortage of rainfall seen in the post-monsoon season, and if there is no improvement in the situation, it could impact tractor sales in the future as well.

However, the demand could increase during the festivals.

Tractor manufacturers are hoping for a revival in sales this month, during the festivals of Dhanteras and Diwali. There has been a consistent increase in tractor sales since the financial year 2020. In the financial year 2023, there was a 12% increase in annual tractor sales in the country. During this period, 9,44,000 units of tractors were sold.

It’s worth noting that the period from September to November is the peak season for tractor sales. During this time, farmers harvest their kharif crops and prepare for sowing for the next season. If the production and prices of kharif crops remain favorable, the purchase of tractors during the upcoming rabi crop sowing season could increase.