After a sharp rise in prices, decline in people’s purchasing power and lack of credit lines, farmers are facing problems in purchasing agricultural vehicles.
Despite having one of the largest producers of agricultural vehicles in the region, meeting the needs of the domestic market in the field of tractors, combines and other agricultural machinery is becoming problematic.
Hossein Ali Kakavand, a member of the Board of Directors of the National Assembly of Agricultural Experts, recently said tractors have experienced a 200% price increase and this uptrend is continuing.
As the purchasing power of people has lowered, many buyers are seeking government facilities to buy agricultural machinery. But the lack of facilities has led to a significant reduction in purchases such that the continuation of this trend could make production units bankrupt.
Reports indicate that in the last one year, credit lines have not been paid to farmers and this has intensified farmers’ woes in purchasing agricultural machinery.
According to some experts, since Tabriz Tractor Manufacturing and Supply Parts Engineering Company, as the largest producer of such vehicles in Iran, has reduced its cooperation with the Agriculture Ministry, loans provided to applicants have been interrupted.
According to Kakavand, before the termination of this cooperation, the ministry would extend loans to farmers, which included an 80% credit line and 20% of the farmer's principal with a 15% interest rate and a five-year repayment period.
In recent years, like other automotive sectors, this segment has been associated with problems related to supply and price hike. As a result, buyers’ dissatisfaction over a lack of affordable models has increased.
As only few models are supplied by distributors, demand is high in the domestic market.
Some experts believe that the price hike is mainly caused by market mismanagement. While the domestic agricultural machinery market is suffering from many problems in recent years similar to those facing the manufacture of other commercial vehicles, this has reduced production and increased prices.
Bolivia Asks Iran to Set Up a Tractor Assembly Line
While domestic producers are facing problems to meet the needs of the country, Bolivia’s ambassador has requested Iran to build an assembly line in that country.
While referring to the use of 700 tractors made in Iran in Bolivia’s farming sector, the ambassador believes the establishment of a tractor assembly line would be cost-effective.
During a visit to Tabriz Tractor Manufacturing and Supply Parts Engineering Company, Romina Perez said at present, a significant amount of the mechanization of Bolivia's agricultural sector is dependent on these tractors, and immediate action must be taken to supply parts required by these tractors.
"The trip to Tabriz and tractor manufacturing plant was carried out in line with the Iran-Bolivia Cooperation Commission’s implementation of the provisions of the joint memorandum of understanding between the two countries in this meeting, one of the most important results of which will be the establishment of an Iranian tractor production line in Bolivia,” she said.
Perez noted that the government of Bolivia, particularly the Ministry of Rural Development of Bolivia, is seriously pursuing the establishment of an assembly line for Iranian tractors, and there is a political will to achieve this goal, such that another trip to Tabriz has been planned by a representative of Bolivia for the execution of this project.
