New Delhi: Domestic demand for tractors may touch 8.6 lakh units by 2015, thanks to increased money supply in the rural system which in turn has increased farmer's liquidity, a study has said.
At present, the demand for tractors is about 5 lakh units in the country, Assocham said in the study.
"Rising rural liquidity together with high disposable income of farmers due to government social schemes like Mahatma Gandhi National Rural Employment Guarantee Act are collectively contributing to growth of tractor industry which has provided necessary push for greater farm mechanisation," Assocham Secretary General D S Rawat said.
Besides, he said, increasing application of tractors for non-farm operations like infrastructure and construction projects, transportation, haulage and better crop realisation through higher minimum support prices (MSPs) have driven the demand for tractors.
The study said among the regions which witnessed high sales of tractors, North India has the highest percentage of 55 percent, followed by western states 24 percent, southern states 15 percent and Eastern India about six percent.
It also said easy tractor loans by commercial banks together with an innovative credit delivery system like Kisan Credit Card have led to the growth of this industry.
First Published: Sunday, October 14, 2012, 12:31