M&M chief executive, Tractor and Farm Mechanization Business, Bishwambhar Mishra said industry’s growth would be about 13% in current fiscal, much lesser than what it was in last fiscal, on account of rising lending rates, less hike expected in minimum support price of various crops and increase in labour cost
Chandigarh: Farm equipment major Mahindra & Mahindra (M&M) on Thursday said it would raise tractor prices by 1.5% soon in the wake of spiralling input costs, reports PTI.
“We will raise price of our products (tractors) by 1.5% in a month or so,” M&M chief executive, Tractor and Farm Mechanization Business, Bishwambhar Mishra told PTI.
Asserting that the company has not been passing on the full impact of rising cost by absorbing major portion of rise in cost, he said that there was now need to pass on some portion of cost to consumers by raising rates of tractors.
He pointed out that only material cost for the company had risen in the range of Rs45,000 and Rs50,000 per tractor in last two years.
M&M raised tractor rates by Rs5,500 per unit in the month of June this year, he said.
Asked about expectation on tractor industry’s growth, Mr Mishra said industry’s growth would be about 13% in current fiscal, much lesser than what it was in last fiscal, on account of rising lending rates, less hike expected in minimum support price of various crops and increase in labour cost.
“We think the growth of tractor’s industry will remain 13% compared to 20% achieved in last fiscal,” he said.
During April till August in current fiscal, tractor segment witnessed growth of 16.9%. “But we do not expect this growth momentum to continue in second half of current fiscal,” he said.
The tractor industry grew by 20% in 2010-11 and 30 per cent in 2009-10 while size of tractors was expected to be 5.35 lakh units in current year.
Asked about company’s growth expectations, Mr Mishra said that M&M would perform better than the industry’s overall growth. “Our growth will be more than the industry’s growth in current fiscal,” he said without divulging the figure.
Stating that the steel ministry was not in favour of any export of iron ore, Union steel minister Beni Prasad Verma said the move would ensure that there is no shortage of the raw material for the domestic steel units
New Delhi: Steel minister Beni Prasad Verma on Thursday said he has written to the finance ministry urging to hike export duty on iron ore to 30% from the current 20%, reports PTI.
“We want higher duty on export of iron ore and last week, I wrote to finance ministry to increase the duty to 30% for both iron ore fines and lumps,” Mr Verma told reporters here.
Stating that the steel ministry was not in favour of any export of iron ore, he said the move would ensure that there is no shortage of the raw material for the domestic steel units.
The government in the Budget had hiked duty on iron ore, both fines and lumps, to 20% in order to discourage exports and encourage value addition.
The hike was not appreciated by the iron ore industry, which had dubbed it as the ‘death knell’ for it, on which relies the livelihood of over a million people.
After the duty hike, exports of iron ore have declined by about 22% to 25.2 million tonnes in April-July to the corresponding period last fiscal.
The Federation of the Indian Mineral Industries expects iron ore exports to fall by over 20% to 75 million tonnes in the current fiscal from 98 million tonnes in 2010-11.
Meanwhile, steel secretary PK Mishra said the new steel policy would come out by the end of the year.
“The need for this arose as the last policy’s time-frame was till 2010 only. So we felt that this is the time to review the policy and come out with the realistic estimates,” he said adding that four sub-groups have already been constituted.
“They will submit their reports by 15th October. Then we will have a couple of meetings to finalise it,” Mr Mishra added.