Tractor Industry and Farm Mechanization Performance

Engineering Post Report

Farm mechanization is an important  element for accelerating growth in the agriculture sector  and  its lack is a main constraint  in increasing agricultural productivity in the country.

The federal government  has continued the relief package that allows  import of farm machinery  and equipment at reduced tariff, Custom Duty 0-2 per cent and General Sales Rax (GST) 07 per cent,  for encouraging mechanized farming in the country.

The domestic  tractor industry  is playing  a significant role in fulfilling  the requirements of tractors. The number of operational tractors in the country is around  612000 resulting in availability of around  0.09 horsepower (HP) per acre against  the required power of 1.4 HP per acre.

During July 2020 to March 2021, total  tractor production in the country was  36653 compared to 23266 produced last year indicating  commendable 57.6 per cent increase. The increase in tractors production  was largely  due to an improved  liquidity position of farmers.

M/s Al-Ghazi Tractors Limited  had produced 7197 tractors of  11 models of different HP out of which 6198 were reportedly sold  during the period under report.

M/s Millat Tractors Limited  had produced 25913  tractors  of nine models of different HP  out of 25915 were sold during the period.

On the whole, both the two local tractors manufacturing entities  had produced total 33110 tractors out of which 32113 were sold.

Prices inclusive of tax of all models ranged from Rs 945000 to Rs 2152500  for all models of HP produced by both Al-Ghazi Tractors Limited and Millat Tractors Limited.