Demand driven by availability of electricity and easy financing options, says report
The agricultural machinery market in India is expected to reach ~Rs.1,538.99 billion by FY 2027, expanding at a CAGR of ~7.63% during the FY 2023 – FY 2027. It was valued at ~Rs.991.36 billion in FY 2022, according to a ResearchAndMarkets report.
In the past few years, the sale of agricultural machinery has surged because of the availability of electricity and easy financing options, the “Agricultural Machinery Market in India 2022-2027” report said on 17 Jan 2023.
India is the world’s biggest tractor manufacturer, and accounts for more than one-third of the global tractor production. In FY 2022, the tractor segment held the largest share of the market, accounting for 81.45% of the market revenue.
Tractor penetration is high in northern India’s agrarian zone, principally Punjab, Haryana, and Uttar Pradesh. In the south and west, mainly Andhra Pradesh, Tamil Nadu and Maharashtra, the adoption rate is low. Other segments of the market include rotavators, threshers and power tillers.
The tractor segment is mostly dominated by high-capacity tractors of 30 HP-50 HP.
The lockdown, which was imposed by the government during FY 2021 to curb the spread of the virus, brought trade, manufacturing and commerce to a standstill, according to the report.
After the relaxation of restrictions in the second quarter of FY 2021, the sales volume improved and surpassed that of FY 2020. The market remained resilient to the impact of the pandemic in FY 2021.
However, the devastating second wave in the first quarter of FY 2022 severely impacted the market, resulting in a sharp decline in sales in April and May 2021. The sale of tractors and other agricultural equipment declined considerably.
The market is showing signs of recovery in the second and third quarter of FY 2022, ahead of the domestic festive season and Kharif crop season, said the report.
The agriculture and allied sectors play a crucial role in a developing agrarian economy like India. More than 50% of the population is dependent on agriculture for livelihood.
Improved awareness among farmers about farm mechanization, innovation and lack of manual labor are the major driving forces of the agricultural machinery market, said the report.
The industry includes:
Escorts Kubota Limited
Force Motor Limited
Greavers Cotton Limited
Shivagrico Implements Limited
VST Tillers Tractors Limited
John Deere India Private Limited
Tractor and Farm Equipment Limited
International Tractor Limited
CNH Industries India Private Limited. fiinews.com
