“We believe that a part of the demand growth should continue well into next year given the thrust on rural infrastructure in the Union Budget 2021. However, any potential risks such as an inadequate monsoon in the coming year may limit the growth print to single digits in FY22.”

Furthermore, budget FY22 proposals such as healthy allocations towards various ongoing farmer welfare schemes will support the demand for agriculture equipments. “The budget proposals like higher farm loan disbursals and higher allocation under Rural Infrastructure Development Fund and Micro Irrigation fund is also likely to support farm sector,” said Ms Shruti Saboo, Associate Director, India Ratings and Research. According to Mr Dewan: “Over the short term, enhanced focus or outlay of the government on procurement of crops is likely to aid farm cash flows, and help sustain tractor demand.”