Loan waiver, GST rates to push tractor sales to all-time high in FY18

Normal monsoons, steps to boost rural economy will also support higher demand for farm equipment

With multiple tailwinds helping them, tractor makers Mahindra and Mahindra (M&M) and Escorts are set to post strong sales in FY18. Reduction in goods and services tax (GST) rate for tractor parts and fertilisers, normal monsoons, farm loan waivers and steps to boost rural economy would translate to higher demand for tractors. The sector, which posted an 18 per cent growth in FY17 to 582,000 units, would need to grow at 9 per cent to overcome the FY14 record of 634,000 units. Credit Suisse analysts, Jatin Chawla and Vaibhav Jain, expect the sector to cross the peak industry sales (of