Profile and Impacts of Tractorization

Out of 19 licensed tractor manufacturing companies were producing tractors in 1990-91. The import of tractors has declined with fluctuation from 2997 in 1961-62 to 10 in 1986-87 at the rate of -23.20 per cent per annum. The total production of tractors has increased at 8.29 per cent per annum. But the production capacity of the industry remained constant. Cosequently, capacity utilization has increased from 33.34 per cent in 1982-83 to 92.34 per cent in 1992-93. The total sale of tractors has increased at the rate of 8.98 per cent per annum. Mahindra and Mahindra Ltd. Represented highest share of sales of tractors. In 1990-91 highest number of tractors were sold in state of Haryana and Punjab. The positive rate of growth of tractors, gross cropped area, total labour days employed in agriculture and multiple regression analysis have undoubtly proved that farm tractorization is land and labour augmenting technical change. Since 1987-88, country became self sufficient in production of tractors. From 1987-88 to 1993-94, the export of tractors has increased by 28.13 per cent per annum. The international market for our tractors has widened by 3.71 times and the direction of exports has also changed drastically.