COVID-19 CASES
WorldIndiaConfirmed118,447Deaths3,583Confirmed5,102,424Deaths332,924MUMBAI: Demand for tractors is rising as fertiliser sales and foodgrain production hit record highs, reservoirs hold more water than 10-year average and a normal monsoon is forecast.
Demand for tractors has outstripped supply, as output has fallen with factories operating at a quarter of their capacity. Segment leader Mahindra & Mahindra has started planning for a second shift to meet demand, while rivals Escorts and Sonalika tractors have indicated that the market would return to normal levels within a quarter. Insiders expect the segment to continue growing and post the best performance in the automotive industry.
Demand is getting better by the week and it is adding to the confidence, said Hemant Sikka, chief executive, farm equipment business, M&M. “Enquiry levels are going up, with 65% of our markets opened, this will go up to 80% within a week. The cash flow is strong in the rural area on the back of a very good harvest. The government has been proactive in getting the mandi system moving. If the infection curve does not worsen, we can return to normalcy within a quarter,” he said.
More than 80% of wholesale agriculture markets are fully functional now compared with 40% soon after lockdown started in late March. The recovery from demand shock due to the lockdown, therefore, is expected to be faster in rural areas than in urban centres, thanks to better cash flow prospects from crops.
Escorts said sales should start growing in the second quarter.
Source: indiatimes.com
