VST has seen an uptick in orders in the last two months, also aided by festive demand and improved sentiments in rural markets, says Cherukara.
| Photo Credit: KVS GIRI
The overall market outlook for farm equipment and agriculture machinery in the second part of FY26 seems very positive, saidAntony Cherukara, CEO, VST Tillers Tractors Ltd.
“A favourable monsoon, improved reservoir levels, and the recent GST reduction on farm machinery are expected to significantly increase rural consumption of farm equipment and boost mechanisation in the country’s agriculture sector,’’ he told The Hindu on Tuesday.
He said the farm segment was doing well this year, helped by supportive policies and enhanced affordability of farm machinery for small and marginal farmers. The growth momentum was continuing in November as well, he said.
“We expects the second half of the fiscal to perform better than H1.’ Plus, the reduction of GST on farm machinery from 12% to 5% has already begun to trigger demand and will have a sustained positive impact, especially in the second half of the year.’’ he anticipated.
Antony Cherukara
Further explaining Mr. Cherukara said, “You can, practically, say 12% to 5% means one or two EMIs are taken care of. The GST cutdirectly supports the smaller farmer,” adding the benefit would be felt most in smaller horsepower categories:20 HP and below tractors, and also power tillers and power weeders.
On the broader industry trend where small and mid-sized farmers are increasingly opting for higher HP tractors, he explained that many mid-level farmers buy bigger tractors not only for their own farms but also to rent them out for agricultural and commercial purposes.
“Farmers with less than 5 acre cannot afford tractors; they go for power tillers. But farmers with 5 to 15 acre often buy bigger tractors because they earn by renting them out,” he elaborated.
According to Mr. Cherukara, VST has seen an uptick in orders in the last two months, also aided by festive demand and improved sentiments in rural markets.
“The overall tractor industry grew by more than 14% in October year-on-year. Power tiller sales have shown even stronger momentum. We sold 4,077 power tillers in October compared to 1,700 in the same month a year ago, indicating growth more than doubling,’’ he shared.
VST Tillers, which closed last year with 37,000 power tiller sales, has already crossed 24,800 units in the first half of the current year. The company expects to sell over 45,000 power tillers by the end of the year. The company’s key markets for tillers include the paddy-growing regions across eastern, southern and western India — from Assam and Odisha to Andhra Pradesh, Tamil Nadu, Kerala and Karnataka. Tractor sales, too, are expected to grow 10% domestically this year, touching more than 6,000 units compared to over 5,000 last year.
Published – November 25, 2025 07:39 pm IST
