Tractor sales expects to grow by 12 % thanks to monsoon, declining rates

Declining interest rates, farm loan waivers by states to fuel demand

Tractor sales are expected to increase by 10 to12 per cent in the current year to around 650,000 units. This comes against the backdrop of successive monsoons and declining interest rates. Last financial year, tractor sales stood at 580,000 units, which was lower than in 2014.

The recent decision to waive farm loans by various states is expected to accelerate the growth further. Manish Gupta, Director, CRISIL Ratings, said, "While the cascade of good tidings from weather to farmer to farmer is on, there is another positive structure to note; that average tractor penetration in India is very low at