The market sentiment for tractors is positive, and the tractormanufacturer Sonalika is ready for healthy sales in the ongoing festivalseason.
Notably, the tractor segment has bucked the Covid-19downtrend.
On its part, India's largest tractor exporter -- Sonalika --has registered an overall growth of 5 per cent in Q1.
In June, the company reported a 55 per cent growth, whichincreased to 71.7 per cent in July and subsequently attained highest ever risein sales of 80 per cent in August.
Last month, it sold 17,704 units with a 51.4 per centdomestic growth.
In a conversation with IANS, Raman Mittal, ExecutiveDirector, Sonalika Group said he expects the farmers' sentiments to remainpositive.
"The demand is expected to remain healthy, kindled byhigher kharif sowing and a good monsoon coupled with increasing preference offarmers towards mechanisation," Mittal said.
"The festive season is mostly the time when farmers arewilling to spend more while looking for competitive deals, and thus we expectthe growth trajectory to continue in the festive season."
Accordingly, Mittal pointed out that Sonalika is preparedfor the festive season as it contributes around 40-45 per cent of the company'soverall annual volumes.
"Looking at the same, our channel partners have alreadystocked up for the upcoming festive season and have facilitated easy financingoptions," he said.
According to Mittal, tractor demand has picked up momentumon account of higher 'Minimum Support Price' as well as bountiful monsoons andbumper sowing of summer crops.
"Alongside, rains have also made a surprising revisitin various parts of the country that has set up a decent ground for healthyagriculture activities later this year as well as instil confidence in farmersto aim at increased farm output," he cited.
In terms of production, Sonalika's manufacturing was notimpacted significantly due to the outbreak of Covid-19.
The company makes majority of components that go into themanufacturing of a tractor at its facility in Hoshiarpur, Punjab.
"In fact, we had reached 80 per cent utilisation infourth week of May itself and have been operating at an optimum level,"Mittal said.
On farm mechanisation, he said the pandemic triggeredlockdown has further fuelled Indian farmer's progress towards farmmechanisation.
"Farm mechanisation penetration in India stands at anaverage of 45 per cent for the entire crop cycle," he said.
"The lockdowns due to the pandemic led to a hugemovement of labour towards their respective native lands and thus farmers faceda lot of labour shortage across regions. I would say the pandemic has furtherfuelled this trend."
Notably, the owner of Sonalika was recently featured in IIFLthe Wealth Hurun India Rich List 2020.