Agri growth spurs farm equipment sector in MP
High growth rate in the agriculture sector in the state, coupled with an adequate monsoon, have made Madhya Pradesh an attractive market for farm equipment manufacturers.bhopal Updated: Sep 26, 2012 11:39 IST
High growth rate in the agriculture sector in the state, coupled with an adequate monsoon, have made Madhya Pradesh an attractive market for farm equipment manufacturers. Companies are choosing the state as a market to launch models ahead of other states, hoping to get a more positive response.
Chief executive officer Escorts Agri Machinery S Sridhar, who was in Bhopal to launch a new line of tractors told HT that the company is eyeing the state as an important market. "MP is the first state for the launch of the new models. Farmer sentiment in MP is best in the country and the state is doing well in agriculture sector," said Sridhar. "MP is the best performing market in the middle sector and the soya crop has not had a substantial pest attack either which is a positive factor," he said. According to the surveys by the company, with monsoon being deficient, the agriculture sector is not looking very good in the rest of the country.
Sources in the industry said there has been a negative 10% growth in the sector compared to the same quarter last year. MP has managed to buck the trend of a decline in sales in farm equipment. Earlier, tractor sales grew by 20-30% annually but not anymore.
General manager (marketing) Eicher Tractors Rajesh Jain told HT that MP is the very important among the growing markets. "MP is a sizeable market and the adequate monsoon is an important factor which will add to the growth further," he said. "We have launched models in MP earlier and a number of models in the pipeline that will be unveiled soon," Jain added.
Advisor, federation of MP chambers of commerce and industry (FMPCCI) Pratap Verma said the agriculture sector witnessed a record 18% growth in 2011-2012. "With the monsoons being adequate, reservoirs are full and ground water recharge has taken place. This would keep the growth sentiment intact for the upcoming Rabi season too," he said.