ukraine: Tractor sales soar as Ukraine crisis drives up farm incomes | Chennai News

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Chennai: The current crisis in Ukraine has helped turn the tide in the Indian tractor market. The strong attraction of wheat exports and higher domestic oilseed prices led to the industry’s best domestic sales in April. According to the tractor companies, April domestic sales were 89,200 units, up nearly 41% from the 63,422 units sold last April. Exports at around 10,000 are up more than 3%.
Combined, tractor volumes (domestic and exports) hover around the lakh unit mark for the first time in six months. The last time tractor sales hit the one lakh mark was in November 2021, when they peaked at 127,809 units in domestic sales and 12,194 units in exports.
A number of factors contributed to the rebound, with prices topping the charts. “Amidst the current global situation and India’s high wheat exports, the demand for Indian wheat has been very high, leading to farmers fetching higher open market prices for their produce than the MSP. Oilseeds fetch a higher market price in the domestic market,” said Hemant Sikka, President – Agricultural Equipment Sector, Mahindra & Mahindra Ltd.
Other tractor traders say sugar attracts good prices because of the production of ethanol as automotive fuel. “The harvest has been good, agricultural exports are keeping prices stable, so the mood is optimistic,” said the CEO of a major tractor company. “Last year was a bumper and if the monsoon is normal, as expected, this year will be one too.”
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