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Informist, Monday, Sept. 21, 2026

MUMBAI – Retail sales of tractors grew only 0.8% on year in August despite 6.5% growth in wholesale sales because of monsoon-related stress and a high base effect, ICRA said in a report Monday. The rating agency expects momentum of growth in tractor sales to be relatively subdued for the remainder of 2026-27 (Apr-Mar) due to expectations of "unfavourable" monsoon and its impact on output in rural areas.

A fall in rural output is expected to weigh on incomes of farmers and also on replacement demand, on top of the high base, ICRA said. The agency expects wholesale sales of tractors in to grow around 1-4% in FY27 after 24% growth in despatches a year ago, and forecast of a below-normal monsoon by the Indian Meteorological Department.

The south-west monsoon in India has been deficient and unevent because of El Nino conditions, as the cumulative rainfall deficit stood at 85% of the long-period average as of last week. "Recent IMD rainfall data also points to precipitation deficits across parts of South Peninsula, eastern India and northeastern India. Prolonged rainfall shortfalls could affect kharif crop production and farm incomes, thereby posing downside risks to tractor demand and sales," ICRA said.  End

Reported by Anand JC

Edited by Avishek Dutta

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