Tractor Sales is Predicted to be Rise just by 3-4% in FY22 - As Covid-19 Impacts Rural Areas More

We all have witnessed the Covid-19 pandemic second wave, and this second wave is more dangerous than the first one. In this second wave, India recorded the highest death rate. Currently, one from every third person is affected by this virus. The infection rate rises from April recorded 350000 plus cases in one day in India. Lockdowns are reimposed in almost the whole country. This again affected the Indian economy so badly. Though after a complete lockdown in cities like Mumbai and Delhi, Covid-19 cases have seen a decline. On the other hand, as the cases decrease in metropolitan cities after emission of complete lockdown, infection cases increase rapidly in rural areas. That hit hard compared to last year's pandemic.

According to Crisil Rating Ltd Director, Gautam Shahi, the so far high base of previous financial and seriousness of the pandemic second wave forbid unusual tractor volume rise this financial year. 
Uttar Pradesh, Maharashtra, Karnataka, Rajasthan, Haryana and  Madhya Pradesh, those areas which provide sales over 50% of tractor Volume, are now suffering from the infection.  Many states shut down because of the severe second wave of the pandemic, and this directly impacts rural India.  

Domestic Tractor sales logged a massive growth of 27% year-on-year previous fiscal which recorded 900000 units sales. From May, the unlocking of the economy happened from may previous year. Tractor sales, passenger vehicles, two wheelers witnessed remarkable growth beyond expectation. Last year the Covid-19 cases were less compared to the second wave in rural areas, and the government also initiated to provide help to protect farm income. And the bummer summer crop is cherry on the cake that also helped in pushing the sales. 

He added in their statement that “raised in government investment in rural India expectations of higher minimum support price (MSP) for 2021-22, should activate rural incomes. Along with this, 20-25% demand of non farm tractor restrained previous fiscal. It is now predicted to recover and the mining activities and infrastructure activities provided by the last fiscal. 

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