How Tractor and Fertilizer Sales Reflect Agri-Sector Growth

April 28, 2025

In 2024-25, Indian agriculture experienced growth. Sales of tractors and fertilisers reached impressive levels. This growth is a key indicator of the agricultural sector’s health. The Green Revolution‘s legacy continues to influence these trends.

Tractor Sales Performance

Tractor sales increased by 8.4% in 2024-25. This equated to 9.40 lakh units sold. The sales figures were close to the record of 9.45 lakh units in 2022-23. Generally, tractor sales reflect agricultural output. For instance, years of poor agricultural performance, such as 2014-15 and 2015-16, saw a decline in tractor sales. Conversely, strong agricultural years like 2016-17 and 2017-18 recorded a rebound in sales.

Impact of El Niño

El Niño events affect agricultural productivity in India. Years with El Niño, such as 2023-24, often correspond with lower tractor sales. This phenomenon causes abnormal warming in the Pacific Ocean, leading to monsoon failures. The correlation between agricultural growth and tractor sales breaks down occasionally, notably in 2018-19 and 2021-22, when tractor sales did not align with agricultural growth statistics.

Fertiliser Sales Trends

Fertilisers also saw record sales in 2024-25. Urea sales reached 387.7 lakh tonnes, while complex fertilisers hit 142.1 lakh tonnes. This growth aligns with a 4.6% increase in the farm sector’s gross value added. However, di-ammonium phosphate (DAP) sales declined, indicating supply issues. Farmers turned to alternatives like ammonium phosphate sulphate and single super phosphate due to DAP shortages.

Shifts in Fertiliser Consumption

The consumption of complex fertilisers has surged. From 2013-14 to 2024-25, sales of complex fertilisers nearly doubled. This shift indicates a reduced reliance on high-analysis fertilisers like DAP and muriate of potash. Urea remains the only high-analysis fertiliser with consistent growth, attributed to heavy subsidies and stable retail pricing.

Overall Agricultural Growth

The agricultural sector’s growth in 2024-25 reflects resilience and adaptation. Despite challenges such as El Niño, the sector has shown the ability to rebound. The increase in tractor and fertiliser sales signifies a positive outlook for Indian agriculture.

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