Karnataka had emerged on top with highest compounded annual growth rate (CAGR) of over 18 per cent in terms of tractor sales registered during the eight year period of 2004-05 and 2011-12 and remained the only state to have registered higher growth than all-India level of 16 per cent.
“However, Karnataka is suffering from poor tractor penetration of just about three per cent,” noted the study Future Outlook for Demand of Tractors in India conducted by the Associated Chambers of Commerce and Industry of India (ASSOCHAM).
“Haryana and Punjab remained on top with highest tractor penetration of about 27 per cent in both the states followed by Uttar Pradesh (23.5 per cent), Bihar (20 per cent) and Odisha (12 per cent),” highlighted the study.
Tractor production in India has grown at a CAGR of double digits (10 per cent) during decadal period of 2001-02 and 2012-13, noted the study.
However, tractor penetration in India is very low and that might encourage potential demand for tractors.
“Demand for tractors is heavily dependent on agriculture production and level of monsoon received, thus with forecast of normal Monsoon this year production, demand and sale of tractors might improve in the latter half of this year,” said Mr D.S. Rawat, national secretary general of ASSOCHAM.