March 21, 2012, Mumbai: Tractor Manufacturers Association (TMA) recently announced that the hike in excise duty from 10% to 12%, in the Union Budget 2012 â€“ 13,Â would lead to a hike in tractor prices.
Raising concern over this increase of 2% rise in excise duty on tractors, Mr Avinash Patankar, Chairman TMA Marketing Committee & Senior Vice President, Sales & Channel Development, Farm Equipment Sectors, M&M Ltd. said, â€œThe hike in excise duty from 10% to 12% will adversely affect farm mechanization and agricultural productivityâ€
Due to NREGA, availability of farm labour has decreased during farming season which can only be addressed through farm mechanization. Tractors, farm implements and machines enable the farmers to employ the power judiciously for production purposes which increases productivity of land and labour by ensuring timeliness of farm operations and increased work out-put per unit time.
Besides its paramount contribution to the multiple cropping and diversification, agriculture mechanization also enables efficient utilization of inputs such as seeds, fertilizers and irrigation water. The benefits of farm mechanization to farmers in terms of raised productivity and higher returns are also evident.
In view of the above, TMA requests the government to consider rolling back the rise in excise duty, keeping in mind the interest of the farming community at large. In the event of this raise being given effect, the tractor manufacturers in India would be constrained to pass on the 2% hike to the customers, with immediate effect.
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