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Tractor sales good, but many state govts yet to clear subsidy dues: VST Tillers

Updated : October 08, 2020 15:54:51 IST

VST Tillers Tractors’ September sales have improved significantly, with power tillers logging a 73 percent jump and tractors, 50 percent.

In an interview with CNBCTV18, Antony Cherukara, CEO at VST Tillers Tractors said timely rains,  and crop procurement helped growth in tractor sales.

Cherukara said, however, that many state governments have been delaying payment of outstanding subsidy dues as they have used their funds to combat the COVID pandemic.

Tractor purchases by farmers are subsidised by the state and the subsidy amount is paid to the company.

He said the other key issue was the disruption in supply chain because of the lockdown.

Cherukara expects margins to be stable compared to last year.
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