Tractor industry faces critical test as affordability limits innovation
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A farmer levels his farm field with the help of a tractor in Hyderabad on October 19, 2022. — APP
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LAHORE: The struggling tractor industry is currently at a turning point, which has been tightening with a complex and long -term challenges, which is a hindrance to innovation in the manufacture of relatively low -cost products.
The news was discussed with Scab Eltaf, chief executive officer of Al -Ghazi Tractor Limited, a leading tractor manufacturer of the tractor industry and its main contribution to agriculture.
Eltaf says the agricultural sector has faced challenges since the beginning of this year. Generally, there have been a severe month for sale on January and February. However, unfortunately, the lowest level of sales in these months in 2025 is less than the eight -year average and 43 % lower than the previous year.
The Punjab government’s green tractor scheme was well welcomed to provide relief to the farmers. However, the expert added that it is important to learn from the implementation of the scheme and improve it. With mutual cooperation, the policy framework should focus on increasing mechanization, not changing the current market demand.
He mentioned the factors behind the increase in tractor sales. Last year, the Punjab government introduced the green tractor scheme, which has led to various tractors this year. The demand created last year is still being fulfilled, tractors are being supplied and invoiced in the current year. As a result, if sales of January and February have been excluded, the market has declined by 63 %. “This alarming figures not only affect us not only tractor manufacturers but also on the broader ecosystem, including our shopkeepers, dealers, consumers and financial stakeholders.”
With the sale of about two -thirds compared to last year’s average, the tractor of economic challenges has affected the entire ecosystem of the industry, including shopkeepers, dealers and bankers. 230 shopkeepers help in localization of parts, which provides employment to about 30,000 skilled workers.
“The government’s scheme should not replace the tractor retail program that negatively affects the entire supply chain, rather, they should support the current retail series. Therefore, if you want to enhance mechanism, you need to develop a strategy that will enhance and enhance China.”
According to the CEO of Al -Ghazi tractors, taxes have increased the economic challenges facing the industry. “We need a mutual approach to understanding the impact of taxes on the Bahau customer and developing industry -supporting policies. The government should focus on sustainable programs that increase the mechanism. Sales tax is currently 14 percent. Historically, the tax is needed to buy a variety of prices.
There are shares of Eltaf that farmers need help to afford tractors. “We need programs that provide subsidized financing powers, such as the Prime Minister’s scheme – banks should also participate in providing financial support powers, but we need to develop programs that adjust the loan projects while considering the farmers’ wrong income and paying samples.”
What could be the way forward? Eltaf added that low -acre horsepower is an important challenge. “We need to work as a industry to solve this problem with mutual cooperation. The government should develop policies that support mechanisms, and we want to find new technologies and tools to enhance productivity.”
The tractor industry needs a proper mechanism policy that goes beyond tractors and includes other equipment and technology. “We should find new technologies, such as drones and GPS -powered tractors, to enhance productivity. For example, recently, we have worked with a company to produce an independent tractor. A third party company provides a solution that makes it a driver.
