Mahindra Tractor sales up by 14%; hopes for better monsoon

Mahindra  & Mahindra announced its tractors sales number for July 2016, on Monday.

As per the data released by Farm Equipment Sector – a part of $ 17.8 billion of Mahindra Group, recorded total tractor sales of around 17,553 units, a rise of 14% compared to 15,460 units in the same month of the previous year.

While talking on performance, Rajesh Jejurikar, President and Chief Executive of Mahindra & Mahindra also said, With normal rainfall and its improved spread across India in the month of July, Kharif sowing has been more than last year. We hope for an improved agricultural output and tractor demand in the future.”

What is the outlook of agriculture sector?

A two years drought has severely affected the agriculture sector. India’s agricultural growth in the two years for an average stood at  A good monsoon could push farm growth rates to 6%, Crisil Research said in a report on Wednesday. In such a positive scenario GDP growth rate could cross 8% and average retail inflation, be under 5% during 2016-17, the report added.

Poor rains severely affected farm growth rates in the past two years. India’s agricultural growth in the two years averaged a mournful 0.4%, much below the long term trend of 3%. A livemint report.

However, this monsoon season, market expects the agriculture sector to boom led by above-average rainfall forecast.

Good monsoon could push farm growth rates to 6%, Crisil Research said.

In 2016, while 19 of 36 subdivisions have received normal rains till mid-July; 11 have had received excess rains, added Crisil Research on its website.

Also kharif sowing so far has overcome last year’s data by more than 6%. Barring a decline in cotton sowing, cultivation of most kharif crops surpassed  last year’s figure. Pulses have been taken up in over 41% more areas than the previous year, as per Ministry of Agriculture data released on last Friday.

Well what will be the outcome of Mahindra Tractors ahead will have to wait and watch, as the second half of the monsoon season has just begun. 

The company made domestic sales of around 16,452 units, increasing by 15% from 14,273 units in July 2015. However, total export declined by 7% in July sales to 1101 units from 1187 units sold in July 2015.