Normal monsoon, farm loan waivers to rain good times for tractors
A normal monsoon this year may fuel demand for FY20 by at least 6-8%, translating into 12-14% CAGR between FY17 and FY20
Historically, a growth cycle that lasts 3-4 years is a result of good monsoon, alongside measures such as farm loan waivers
Rural distress notwithstanding, tractor sales are set for double-digit growth for the third straight year. After recording growth of 19% and 22% in FY17 and FY18, respectively, tractor sales are expected to grow by 10-12% in FY19, according to Crisil Research.
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