Tractor assembly approaching collapse in the middle of the lock
KARACHI: Tractor assembly has stalled because the government cannot let vendors automatically operate amid lockdowns, disrupting supplies to assemblers who have faced double-digit declines in their sales, industry officials said Monday.
The tractor industry urges Prime Minister Imran Khan to immediately pay attention to the destruction of tractor manufacturers because the entire industry, including 350 vendors, is currently closed.
“The symbolic permission granted to the tractor industry to start production cannot function separately unless and until proper notice allows allied vendors and traders to produce and transport the components given,” Shahid Hussain, chief executive of Alghazi Tractors said. “This is an urgent need from time if we have to save the harvest and the coming planting season from total destruction.”
Tractor production has been stuck since locking for more than two weeks and zero. This industry is down 23-24 percent year-on-year.
Tractor sales fell to 20,588 units in the first eight months of the current fiscal year from 32,013 units in the same period the previous year. Production fell to 20,408 from 31,879.
“Fabricators are already struggling to survive even before the coronavirus episode, which goes without saying has compounded their problems,” Husain said in a statement. Alghazi Tractors alone has around 700-800 million Rupees under claims.
Tractor manufacturers request immediate and urgent long-term sales tax payments. “A refund will immediately increase the industry’s cash flow and its value chain.”
Hussain said that if a refund was not made, tractor assemblers would need additional funding to fund their vendors during the financial crisis which would certainly add to the misery and operating costs.
“The decline in the tractor sector is most severe compared to other industries because it is not limited to the tractor industry but has a snowball effect on agriculture as well, because it may be the only equipment that helps farmers in mechanization to increase yields. , “Hussain said.
“The vendor base developed in the last three decades has facilitated the country to produce locally up to 90 percent of the parts used in tractors. This seller base can survive only if fabricators continue to produce and sell their units. “
The constant decline in tractor production for almost two and a half years has largely weakened parts manufacturers and some of them have been closed with limited opportunities for revival, eliminating thousands of jobs.
“If the remaining vendors are not maintained it will be a big tragedy for our agriculture because Pakistan produces the lowest cost tractor in the world,” Hussain said. “Because the demand for tractors will increase, the country will be forced to go for expensive imports if the tractor industry is not revived.”
The federal and provincial governments must provide cash incentives to farmers to buy tractors for bank loans with easy installments to increase crop yields and bring cans back on the survival path. “Besides, this is a time when subsidies for tractors for farmers will be useful because the affordability of the formulators at this intersection is very disturbed.”
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