The tractor manufacturers in the region are in trouble due to non-availability of tyres and rising input costs. Almost all major tractor suppliers in the country are facing supply constraints of rubber tyres and this has been affecting the dispatches.
The resurgent markets have helped the tractor manufacturers with a spurt in demand in the range of 20 to 30 per cent last year and over 40 per cent growth in April 2010. But the scarce availability of tyres in the market has affected the deliveries up to 15 per cent.
Sources in Mahindra and Mahindra Swaraj Division, Mohali informed that they had been confronted by the peak shortage of tractor tyres that had undermined their production.
The rising income levels in the rural areas due to better remuneration of crops in the form of MSP (minimum support price), better avenues in the dairy farming, implementation of National Rural Employment Guarantee Act, rapid pace of infrastructure projects were some of the reasons quoted by the manufacturers for the escalation in demand.
Sources in HMT Tractor, Pinjore also confirmed the shortage of tractor tyres hampering the timely delivery of tractors.
The public sector tractor manufacturer HMT recorded a growth of 24 per cent last year and 40 per cent in April 2010 over April 2009.
Most of the players have been facing short supplies of tyres for three months due to consistently high demand for the tractors for over a year.
International Tractors, Hoshiarpur, that manufactures Sonalika Tractors and is the fourth largest player is also hard pressed due to supply bottleneck of tractor tyres.