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Mainstream, Vol 63 No 34, August 23, 2025

Tractor owner farmers, and new challenges & Policy concerns | Rajan Kshirasagar

Saturday 23 August 2025, by Rajan Kshirsagar

The tractor emerged as a symbol of farmers’ resistance in the historic movement held at Delhi’s "veshi" (marketplace or locality). Against the backdrop of the Green Revolution, the use of tractors increased across the country. Recently, it has become increasingly difficult to maintain pairs of bullocks. Once upon a time, a beautiful pair of bullocks was considered a sign of prosperity. Gradually, the tractor took the place of these bullocks. Due to rising fodder costs, labor needed for maintenance, and the demand for cash crops, many small farmers cannot afford to keep bullocks. Instead, the habit of taking tractors on rent for sowing has slowly increased. This has increased the number of tractor holders in villages. Moreover, the sugar industry in Maharashtra added to this with the need for sugarcane harvesting and transportation business. This led to an increase in tractors in orchard areas as well as in the fallow lands on the plains. Through the mechanization of agriculture business, land was consolidated on the basis of tractors. Punjab, Haryana, West Bengal, Uttar Pradesh, and Maharashtra have remained at the forefront in this regard (Table 1.1: Number of tractors by state). Today, the place of tractors in agriculture has become crucial. However, new regulations related to vehicles have now been imposed on this important machine. Tractors are registered as vehicles, and according to new instructions from the Ministry of Surface Transport, each tractor or vehicle is prohibited from being used without a fitness certificate after ten years. If the tractor does not comply with new pollution standards and does not have a fitness certificate, petrol and diesel pumps are obligated not to supply fuel. This decision has provoked a strong reaction among farmers. It is necessary to consider the full details of this and the impact on farmers.

1. To increase tractor use in agriculture and accelerate mechanization, subsidies were given for a time. These subsidies have now been withdrawn or limited due to economic liberalization policies.

2. A 12% GST has been imposed on tractor purchases. The central and state governments collect about INR 7,500 crore annually from this. Additionally, other agricultural implements used with tractors, such as sowing machines, threshers, and plows, are also subject to separate GST.

3. According to the decision issued by the Central Government’s Ministry of Surface Transport, tractors are registered under the vehicle category and must fulfill necessary provisions like other vehicles.

4. Tractor use cannot be indefinite; new tractors must obtain a fitness certificate and pollution-related certificates after a fixed period to be used for the next five years. The same should be done for the next five years for continued use. If these conditions are not met, the tractor cannot get fuel at any petrol pump.

5. The proposed period for this is ten years. There was an attempt to make this a corporate pressure tactic, but due to expected farmer unrest, the central government announced that the 15-year limit will not be changed. Notably, passenger aircraft have a period of 30 years, which should also be taken into account.

Along with these, tractor owners face the following problems:

Tractor insurance (third party vehicle insurance): In India, a few insurance companies collect about INR 850 billion annually as vehicle insurance premiums. Third-party tractor insurance costs 5% to 7% of the tractor’s price, about INR 50,000 to 70,000, which is high compared to other countries. Many countries subsidize this cost substantially