The timely arrival of the south west monsoon, combined benefits of a record Rabi crop, government support for agricultre initiatives and progress in the sowing of the Kharif crop have led to rise in positive sentiments among farmers. These underlying factors along with better cash flows in rural markets have helped boost tractor demand during June.
"It is expected that this demand will continue to remain buoyant in the coming months," he said.
Ltd Agri Machinery Segment (EAM's) domestic tractor sales
in June 2020 at 10,623 tractors registering a growth of 22.8 percent against 8,648 tractors sold in the same month previous year.
“We have seen unprecedented demand in this month. The industry is expected to grow significantly backed by pent-up demand of the lockdown period, better farmer sentiment due to good monsoon
prediction reflected in better than normal Kharif sowing, better rural cash flows owing to record crop output and crop prices, and reasonably good availability of retail finance," said Escorts.
The industry growth is widespread with positive trend in almost all markets barring one or two.
"Our inventory levels, both with the company and with channel have been lowest ever. After necessary permissions, we were able to run our factories in multiple shifts to achieve production at about 90% of the capacity. Supply chain situation, though better than before, continues to remain volatile," said the company.