Industry wholesale volumes grew by 32.0% (YoY) in February 2026 and by 22.8% (YoY) in 11M FY2026, while retail volumes rose by 32.8% and 19.3% (YoY), respectively, driven by favourable agri conditions and the GST rate cut. A hike of 4-10% in MSP for rabi crops announced in October 2025, the highest MSP in the last 7 years, is expected to further strengthen rural cash flows.

The macroeconomic tailwinds for the rural economy, including ready availability of finance and Government subsidies for farm equipment purchases, remain enablers for stable cash flows. Initiatives such as the AIF^, SPARSH and focus on farm mechanisation augur well for agricultural output and tractor demand.

Source: Vahan, Tractor Junction, ICRA Research; *MSP: Minimum support prices; ^AIF: Agriculture Infrastructure Fund