Assemblers raise tractor prices by up to Rs422,000.

KARACHI -- Despite achieving over 90 per cent localisation, the tractor assemblers have increased farm machinery prices by Rs254,000-422,000 in the outgoing fiscal year.

In FY21, the assemblers raised prices by Rs92,000-196,000. An assembler said rupee devaluation and higher freight rates are making an adverse impact on the cost of imported parts.

In FY22, the government continued the relief package that allowed the supply of imported farm machinery and equipment at reduced tariffs (customs duty 0-2pc and GST at 5pc).

In budget 2022-23, the government had proposed to exempt tractors from the 5pc GST which may bring down tractor prices.

The number of operational tractors is 670,000 versus 612,000 in FY21, resulting in the availability of around 0.09 horsepower (HP) per acre against the required power of 1.4HP in both fiscal years.

According to a comparison of Economic Surveys of 2020-21 and 2021-22, NH-480 (55HP), NH-480 Power Plus (55HP), Ghazi 65HP, 640 (75H) and Dabang (85HP), assembled by Al Ghazi Tractors Ltd, are now priced at Rs1.228 million, Rs1.282m, Rs1.419m, Rs1.819m and Rs1.879m as compared to Rs945,000, Rs969,150, Rs1.082m, Rs1.441m and Rs1.479m.

Various models of Millat Tractors Ltd like MF-240 (50HP), MF-350 PS (50HP), MF-260 (60HP), MF-360 PS (60HP), MF375 4WD (75HP) and MF385 4WD (85HP) carry prices of Rs1.251m, Rs1.449m...