Indian Agriculture Trends in Tractor and Fertiliser Sales

The agricultural sector in India has shown notable growth in 2024-25, particularly in the sales of tractors and fertilisers. This growth is a key indicator of agricultural performance. The sales figures reveal a strong correlation between agricultural productivity and the demand for farming equipment and inputs.

Tractor Sales Growth

In 2024-25, tractor sales increased by 8.4%, reaching 9.40 lakh units. This figure is close to the record of 9.45 lakh units achieved in 2022-23. Historical data shows that tractor sales often reflect agricultural growth. For instance, years with negative agricultural growth, such as 2014-15 and 2015-16, corresponded with declining tractor sales. Conversely, positive growth years like 2016-17 and 2017-18 saw increases in tractor sales. The trend indicates that tractor sales can be a reliable indicator of agricultural health.

Impact of El Niño Events

El Niño events have impacted agricultural productivity in India. For example, the years 2014-15 and 2015-16 faced poor agricultural output due to these climatic changes. The 2023-24 year also experienced low growth attributed to a strong El Niño. Despite these fluctuations, there are exceptions where tractor sales did not align with agricultural growth, notably in 2018-19 and 2021-22.

Fertiliser Sales

Fertiliser sales also reached record levels in 2024-25. Urea sales hit 387.7 lakh tonnes, while complex fertilisers reached 142.1 lakh tonnes. This growth aligns with the 4.6% increase in farm sector gross value added. Sales of muriate of potash and single super phosphate also rose . However, di-ammonium phosphate sales declined due to supply shortages, prompting farmers to switch to alternative fertilisers.

Shift in Fertiliser Preferences

Farmers are increasingly using complex fertilisers that provide a balanced nutrient profile. Sales of ammonium phosphate sulphate, a complex fertiliser, have surged, making it the third most consumed fertiliser in India. This shift indicates a move away from high-analysis fertilisers like di-ammonium phosphate and muriate of potash. The increasing consumption of complex fertilisers suggests a change in farming practices towards more integrated nutrient management.

Urea Consumption Trends

Urea remains the most consumed fertiliser in India, with sales reaching nearly 390 lakh tonnes. Despite fluctuations in other fertiliser types, urea consumption continues to rise, primarily due to its subsidised price. The neem-coating initiative aimed at improving nitrogen use efficiency has seen diminishing returns, indicating a need for new strategies to enhance fertiliser effectiveness.

Future Outlook

The agricultural sector’s reliance on tractors and fertilisers is likely to continue. The interplay between climatic events, market dynamics, and farming practices will shape future trends. Policymakers must consider these factors to ensure sustainable agricultural growth.

Questions for UPSC:

1. Critically discuss the impact of El Niño on agricultural productivity in India.
2. Examine the role of tractor sales as an indicator of agricultural growth in India.
3. Analyse the shift in fertiliser consumption patterns among Indian farmers.
4. Estimate the potential challenges faced by the Indian agricultural sector in light of changing climatic conditions.

Answer Hints:

1. Critically discuss the impact of El Niño on agricultural productivity in India.

1. El Niño causes abnormal warming of ocean waters, leading to erratic monsoon patterns in India.
2. Years like 2014-15 and 2015-16 saw negative agricultural growth due to weak monsoons linked to El Niño.
3. In 2023-24, a strong El Niño resulted in low agricultural output growth of 2.7%.
4. El Niño’s effects can create a lag, where poor rainfall in one year impacts productivity in the following year.
5. Despite its negative impact, some years show exceptions where tractor sales did not align with agricultural growth, indicating other influencing factors.

2. Examine the role of tractor sales as an indicator of agricultural growth in India.

1. Tractor sales rose by 8.4% in 2024-25, reflecting a strong agricultural performance.
2. Historical data shows that tractor sales often correlate with agricultural growth rates.
3. Negative sales in 2014-15 and 2015-16 matched poor agricultural growth, while positive sales in 2016-17 and 2017-18 coincided with good growth years.
4. However, anomalies exist, like in 2018-19 and 2021-22, where sales did not reflect agricultural output.
5. Overall, tractor sales serve as a reliable proxy for assessing the health of the agricultural sector.

3. Analyse the shift in fertiliser consumption patterns among Indian farmers.

1. Farmers are increasingly opting for complex fertilisers due to their balanced nutrient profiles.
2. Sales of ammonium phosphate sulphate have surged, making it the third most consumed fertiliser in India.
3. There is a decline in di-ammonium phosphate (DAP) sales due to supply shortages, prompting farmers to switch to alternatives.
4. Complex fertilisers like 20:20:0:13 are gaining popularity, indicating a shift towards integrated nutrient management.
5. This change reflects a growing awareness among farmers about the importance of nutrient balance for crop health.

4. Estimate the potential challenges faced by the Indian agricultural sector in light of changing climatic conditions.

1. Changing climatic conditions, including frequent El Niño events, disrupt monsoon patterns and impact crop yields.
2. Increased instances of extreme weather, such as heat waves and erratic rainfall, threaten agricultural stability.
3. Farmers face challenges related to resource availability, including water scarcity and fertiliser supply disruptions.
4. Market volatility and food inflation can affect farmers’ incomes and investment in agricultural inputs.
5. There is a need for adaptive farming practices and policies to mitigate the impact of climate change on agriculture.