>Farm Equipment Sector

Positive Rural Sentiments Drive Tractor Growth

Mahindra and Mahindra (M&M), the largest player in the Indian tractor market sold 35,844 tractors last month, its second-highest June sales ever. Hemant Sikka, President – Farm Equipment Sector, Mahindra & Mahindra Ltd., attributes this growth to a number of factors.

The timely arrival of the southwest monsoon

One of the critical factors driving tractor growth is the timely arrival of southwest monsoon in India. Reservoir levels touched 33 percent of full capacity by June 25, double that of last year, and much higher than the 10-year average of 19.6 percent.

Revival of rural demand

Industry insiders attribute this sharp spurt in tractor demand to the opening of procurement centres by the government, farmers being flush with cash and good crop prices.

Government support for Agri initiatives

The government’s efforts to strengthen the agricultural sector are also seen as a key reason for the steady growth in demand for tractors. This coupled with the overall improvement in the sowing of Kharif crops, and a robust Rabi crop output, have led to positive sentiments among the farming community.

Mr. Hemant Sikka shared his insights on the industry, its future prospects and the Mahindra Group’s action plan to meet this rising demand for tractors. Watch his interview here.

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