Moreover, instead of promoting and supporting the industry, the government has surprisingly been withholding the sales tax refunds of the tractor industry since March 2020. The vending industry has already drained out all the liquidity it had, which is also affecting OEMs and aftermarket requirements of the tractor industry. The present crisis of the tractor industry could also destroy the informal agricultural sector, which is the backbone of the country. The tractor vending industry was already operating only on marginal profitability and working hard to supply parts to the tractor industry aimed at increasing inputs. A catastrophe is hovering over the heads of the entire tractor industry and farming community, LSMs, agro-growth and food security.

Source: The Nation September 12, 2021 01:52 UTC