New Delhi:
India’s rural economy is showing signs of pressure after the country recorded its weakest monsoon in more than a decade, with rainfall during the June-September season 12.6 per cent below normal.
The rainfall deficit has affected agricultural activity, with lower crop sowing and weaker farm incomes beginning to reflect in demand for tractors and other rural-focused products.
Mahindra & Mahindra reported a 21 per cent decline in tractor sales in September, while Escorts Kubota recorded a 16.7 per cent fall. Bajaj Auto also reported a 12 per cent decline in domestic two-wheeler sales.
The impact has extended to demand for agricultural inputs, with weaker purchases of pesticides, fertilisers and seeds being reported.
Urban demand, however, has remained comparatively stronger. Passenger vehicle manufacturers reported double-digit sales growth as consumers increased purchases ahead of the festive season.
The contrasting trends between rural and urban markets are being closely watched as the festive shopping season gathers pace and concerns remain over farm incomes, rural debt and food-price pressures.