Saturday, December 17, 2022

Tractors in India

 Tractors in India

India is world’s largest manufacturer of tractors with 50% of word output. It’s world’s largest tractor market.

The entry of tractor in India is linked with the partition of India. Who were farming the lands of Punjab? The Muslim landless workers were the major force. Some families with small holding used to do farm activities themselves but farmers with big holdings were supported by Muslim workers. When people came to know that India was going to be divided and a new country for Muslims was coming up as Pakistan and the push factor started from west Punjab, the Muslims from east Punjab also started leaving. There was a push from east Punjab too. Atrocities and killings of innocents were there from both the sides of Punjab. 

Once the major workforce had gone, how did the farmers managed agriculture? They started for the search of some mechanical support. Somebody initiated import of tractor as world war surplus tractors and bulldozers were available. Tractors used to came in parts and assembled at home. The socialist oriented five-year plans of the 1950s and 1960s aggressively promoted rural mechanisation via joint ventures and tie-ups between local industrialists and international tractor manufacturers. On 24 April 1959 Eicher came out with the first locally assembled tractor from its Faridabad factory and in a period from 1965 to 1974 became the first fully manufactured (100% indigenisation) tractor in India. HMT started tractor production in 1972. Local tractor production in India initialised by five manufacturers – Eicher, Mahindra and Mahindra, Tractors and Farm Equipment Limited (TAFE), Gujarat Tractors, and Escorts. Today, Mahindra & Mahindra in No.1 company selling highest tractors in the world. Mahindra, Swaraj, Sonalika, Massey Power Trac, John Dere, Eicher Indo Farm, Escorts, Preet, Sonslika, Kuboto, Force etc, more than 27 brands are popular in India. Mahindra, Massey Ferguson and Sonalika contribut 70% of the market share. 

The Tractor Market is Segmented by Engine Power (Less than 30 HP, 31-50 HP, 51-80 HP, and Above 80 HP), Drive Type (Two-wheel Drive and Four-wheel Drive), and Application (Row Crop Tractors, Orchard Tractors, and Other Applications). One has a choice. 

India is a country of 90 million farmers. Tractor density in India is approximately 16 tractors for 1000 hectares of land. The India tractor market size is expected to reach 910.8 thousand units by 2028 from 614.5 thousand units in 2021.

Mechanisation of agriculture has ease the farmers but has reduced the oxen population in India. However, cattle population is increasing and milk production has gone up to 200 MMT, the largest producer (21%) in the world. UP produces the highest but Anand (AMUL) is the milk capital of India. India has simultaneously grown to become world largest beef exporter (20%) and one of the largest producer (5th). Per capita consumption of beef may be less but considering the size of population it consumes a lot about 50% of its production.

We do talk about white revolution but avoid discussions on pink due to religious sentiments. Entry of Tractors in India promoted green revolution and has changed the shape of rural economy. 


11 November 2022


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