Mini tractors make inroads into Punjab, Haryana, HP

Reason: Low cost, fuel-efficient and easy to maintain

Vijay C Roy

Tribune News Service

Chandigarh, December 4

As the average land holding size is shrinking, tractor manufacturers are targeting small and marginal farmers of prosperous Punjab, Haryana and Himachal Pradesh to sell low-cost and low-powered machines or mini tractors.

Categorised under below 30 horse power (hp), these tractors are light-weight, economical and also fuel-efficient as compared to diesel guzzling giants above 50 hp. Price of mini tractors starts from Rs 2.5 lakh per unit while high-powered variants have price tags ranging between Rs 6.5 lakh and Rs 15 lakh, depending on the brand and accessories.

“So far, mini tractors were popular in western India, mainly in Gujarat and Maharashtra because of small land holdings. However, the acceptance is increasing in northern states such as Punjab, Haryana and Himachal Pradesh, especially where the farmers’ holding is small or land is used for horticulture purposes,” Captain Tractors’ Director Satish Movaliya said.

According to estimates, around 35% of farm households in Punjab fall in the category of small and marginal farmers (holding less than 5 acres). Traditionally, Punjab has been predominately a market for high-powered tractors that also reflected social status of the farmer. The situation is, however, changing as farmers are now guided by the economic considerations, experts said.

Family division has led to fragmentation of the land holdings in the region. Due to labour shortage, the farmer in these states is compelled for mechanisation, they said. Many farmers cannot afford high-powered tractors and related equipment that cost over Rs 7 lakh. Further, small land holdings means that owning a powerful tractor would not make any business sense as most of the time it would lie idle, they added.

Mini tractors are getting popular and have a sizable market share in the country. In April-October this year, 47,918 units of mini tractors were sold as compared to 44,916 sold during the corresponding period last year.

"Compared to other parts of the country, farm land is quite small in Gujarat and Maharashtra. As a result, mini tractor concept was developed in Gujarat and was well accepted. The relatively lower price of a mini tractor is also one of the reasons for attracting farmers from other states. Farmers can do multiple activities by spending less," said Movaliya.

According to experts, the market of mini tractors is growing in northern states because of viability as acquisition and operating expenses are low for small and marginal farmers. Also, the usage of mini tractors has been evolving from just agriculture products to cargo vehicles. “These tractors have the advantage of being able to ply on narrow roads, so it can be used for transportation of goods as well. This is why the demand is growing,” an executive working with Sonalika said.

According to the industry, mini tractor is mostly used mainly in orchards and fields of cotton, groundnut and soyabean. However, now larger crop farmers like kinnow, apple, sugarcane and pulses are also buying mini tractors. With the rising demand, almost all tractor manufacturers such as Mahindra & Mahindra, Sonalika, Tafe and Escorts have mini tractors in their portfolio.

Mini tractor sales in India

April-Oct’18 47,918 units

April-October’17 44,916