Tractor and Fertiliser Sales Reflect Farm Sector Growth Trends

Image Source : The Wall Street Joumal

The performance of India’s farm sector is often mirrored in the sales of tractors and fertilisers, two key indicators of agricultural activity. The latest data for 2024-25 suggests a strong year for Indian agriculture, with both categories witnessing notable growth.

Tractor sales rose by 8.4 percent, reaching 9.40 lakh units, just shy of the all-time high of 9.45 lakh units recorded in 2022-23. Historically, tractor sales have closely followed agricultural growth trends, with declines observed during years of poor monsoon conditions and rebounds in favorable farming periods.

Fertiliser consumption also saw an uptick, with urea and complex fertilisers reaching record sales levels of 387.7 lakh tonnes and 142.1 lakh tonnes, respectively. However, di-ammonium phosphate (DAP) sales declined to 92.8 lakh tonnes, continuing a trend of limited availability in recent years.

The correlation between farm sector growth and tractor and fertiliser sales is evident in past trends, where years of strong agricultural output have coincided with higher demand for these essential inputs. The data for 2024-25 aligns with the National Statistics Office’s estimate of 4.6 percent growth in farm sector gross value added, reinforcing the sector’s resilience despite external challenges.

Sources: Indian Express, Economic Times, MSN India, Financial Express