Escorts Agri Machinery, a farm equipment manufacturer, reported a 19.2 percent drop in domestic tractor sales to 9,483 units in March 2022. In March 2021, the company had sold 11,730 units.
Escorts stated in a regulatory filing that total tractor sales last month were 10,074 units, down 18.3 percent from March 2021's 12,337 units.
In the fiscal year 2021-2022, the company sold 87,043 units in the domestic market, a 14.5 percent decrease from the previous year's 1,01,848 units.
The tractor industry wholesales remain weak in March 2022, according to Escorts Agri Machinery, due to the high base of the previous year and subdued commercial demand. In FY22, total tractor sales were 94,228 units, down from 1,06,741 units in FY21.
"Higher Rabi output, good level of water reservoirs, increased Union Budget allocations to rural and agri sector coupled with favourable crop prices, and initial positive forecast of 2022 monsoon season as normal, all supporting rural customer sentiments, all supporting tractor demand next year," the company added.
Rising inflation, on the other hand, continues to be a source of concern, according to Escorts.
In March 2022, 591 tractors were exported, compared to 607 tractors in March 2021.
In the construction equipment segment, the company sold 386 machines against 525 machines sold in March 2021, a drop of 22.8% year-on-year.
Owing to the high base of last year, severe price rises due to emission norm revisions, increased inflation in commodity prices, and muted rentals, the construction equipment business remains depressed in March 2022, affecting retail sales. said the company.
"We expect demand for construction equipment to improve in the next year as a result of the government's focus on infrastructure projects. Commodity price inflation continues to be a source of concern "According to the company.
