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Deepening Used Tractor Penetration to Boost Farm Mechanization Levels in India

Tractors have played a major role in changing how farming is done all around the world, and India is playing a big part in that change. India is the largest market for tractors globally. But it is also a country with low farm mechanization levels. Today, it is below 50 percent. To boost the farm mechanisation levels, increasing the access to used tractors is critical. In this article, we are explaining why used tractors are essential for getting more tractors in rural India and how they can help farmers.

Used Tractor Penetration in India

Challenges in Tractor Penetration

Affordability: The main problem in getting tractors in rural areas is that they are very expensive and require significant investment. As a result, many farmers in rural India, especially the marginal and small ones, find it hard to buy a new tractor. The affordability factor becomes more magnified while purchasing a mid-range or higher HP tractors.

Inadequate Credit Options: Although over the years many credit facilities have come up. However, there are still many factors that make it difficult for farmers to avail of loans. High-interest rates, complete knowledge transfer, awareness of best schemes, etc, are some of the major challenges farmers face.

Difficulty in Planning Expenses: Farmers have income in hand as per their cropping cycle, which is then utilized for their household expenses. Farmers find it difficult to plan the purchase of a high-value product like a new tractor.

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Tractor in the Farm

Role of Used Tractors in Improving Farm Mechanization

Used tractors can be crucial in deepening tractor penetration in rural India and addressing the above-mentioned challenges. Here is how they make a difference:

Affordability and Economic Realities: Used tractors are like a bridge to affordability. Buying a brand-new tractor can be expensive, especially for small and mid-range farmers. Used tractors offer a more affordable way for these farmers to start using machinery in their farming.

Empowering Small and Marginal Farmers: Used tractors give small-scale farmers the power to boost their productivity by relying less on traditional, labor-intensive methods. Using machines helps them farm in time and more efficiently, leading to better crop yields and improved farming results.

Rural Entrepreneurship and Employment: Used tractors make it possible to set up rental services where tractor owners can rent out their machines to other farmers. This way, farmers in the community can work together, sharing tractors for specific applications. 

Steps to Improve Used Tractor Penetration in India

Building an Organized Market for Sale-Purchase: Even today, used tractor sale purchase happens through unorganized markets. Farmers face difficulties in getting tractors of their choice in their village at right price. Many new-age digital companies and Tractor OEMs are taking efforts to build better process around used tractor selling & buying journeys.

Reducing Dependency on Brokers: In the unorganized market, there are brokers who tend to enable the buy-sell in the market. Due to this, there is a huge fluctuation in pricing that hampers the buying experience. 

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Tractor in the Farm Field

Financial Institutions: Banks and financial institutions can assist farmers with innovative credit products. Flexibility in EMI repayments and attractive interest rates are some of the major features that farmers are looking for. 

Manufacturers and Dealers: Tractor manufacturers should give good services for used tractors as well. For example, service support, spare parts availability, etc.

How Can Tractorkarvan Help in Deepening the Penetration of Used Tractors?

Used tractors are important for making tractors more accessible in rural India. By making used tractors more affordable, providing credit options, supporting with after-sale service, we can help in improving the acceptance and thus the penetration of second-hand tractors in India. 

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User Tractors for Sale in the Market

Tractorkarvan is a leading platform trusted by Indian farmers to fulfill their farm mechanization dreams. We offer end-to-end assistance to them to explore, buy, sell, and finance their used tractor.  In an era where tractors are still not accessible to all. Tractorkarvan makes their second-hand tractor buying experience smoother and convenient. Additionally, we also offer a range of farm implements, harvesters, and tractors to address all their farming-related requirements.  


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