Tractor prices surge despite high localisation
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KARACHI: Tractor assemblers have increased prices by Rs92,000-196,000 in the last one year despite high level of localisation.
According to price comparison of Economic Surveys between 2020-21 and 2019-20, the price of Al Ghazi 480-S (55HP) during July-March FY21 soared to Rs945,000 from Rs853,000 in the same period FY20. Though the general sales tax is charged at five per cent but the Survey document revealed Rs45,000 as GST on the above model as compared to Rs42,650.
Ghazi 65HP and 640 75HP prices had risen to Rs1.082 million (including Rs51,550 GST) and Rs1.441m (including Rs68,650 GST) from 977,000 (including Rs48,850 GST and Rs1.288m (including Rs64,000 GST), respectively.
Ghazi’s Dabung 85HP price had swelled to Rs1.479 (including Rs70,450 GST) in the July-March FY21 from Rs1.319m (including Rs65,950 GST) during the same period FY20.
The prices of Millat Tractors Ltd’s MF-240 (50HP), MF-350 Plus (50HP) and MF 260 (60HP) during nine months of FY21 are Rs997,500, Rs1.092m and Rs1.150m as compared to Rs897,750, Rs958,230 and Rs1.029m prevailing during July-March FY20.
MF 375 75HP and MF385 85HP carry price of Rs1.517m including Rs68,850 GST and Rs1.583m including Rs92,450 GST during 9MFY21 as compared to Rs1.356m including Rs64,600 GST and Rs1.428m including Rs68,000 GST prevailing during the same period FY20.
Commencing on price hike, a tractor maker said despite achieving up to 94pc localisation, the industry was hit by rising cost of production owing to soaring steel and raw material prices and higher freight charges in the last one year.
Tractor sales remained brisk with 37pc and 85pc jump in sales of Fiat and Massey Ferguson to 13,587 and 32,051 units in 11MFY21 from 9,900 and 17,328 units in the same period last fiscal.
Published in Dawn, June 19th, 2021
