Agricultural equipment market in slow lane amid coronavirus lockdown

The lockdown has completely disrupted the supply chain. Fearing police harassment and scared of the unknown, several truck drivers and migrant labourers have left for their native places

The lockdown imposed by the Centre to curb Covid-19 pandemic is weighing on the demand for tractors and other agricultural equipment, say manufacturers.

An acute shortage of labour is prompting farmers to take to mechanisation. But with tractor dealers shuttered and banks and financial institutions snapping the credit lines for purchases, the world’s biggest market for farm equipment is in disarray. Close to 95 per cent of tractors in India are bought on credit.
 

While the government has exempted the agri-machinery and spares from lockdown, the sale of tractor remains locked out as they do not fall within the essential category,