|
Main Page
|
 |
|
News Channel |
|
Tractor prices may shoot up
KARACHI (April
24 2004): The prices of tractors may go up due to
increase in the prices of all items of steel.
Industry sources said that due to heavy increase
in the prices of all steel items, the cost of
production of tractors has gone up manifold.
The decision for price increase is yet to be taken
as the percentage of raise is being worked out.
The production and sale of tractors have gone up
in March. Besides Zarai Tarqiati Bank Ltd (ZTBL)
commercials banks have also started giving loans
to farmers for purchase of tractors.
There are two leading manufacturers of tractors in
Pakistan. Millat Tractors is producing 5 brands of
Massey Ferguson, and Al-Ghazi Tractors is
producing three brands of Fiat tractors.
There is an agreement between the tractor makers
and the government that tractor prices would not
be enhanced. In July 1998, an SRO was issued by
the government allowing sales tax exemption and
zero duty on import of CKD kits, and the tractor
makers had agreed not to increase prices. But in
violation of this agreement, tractor prices were
raised twice after the SRO was issued.
But now the contention of the industry is that the
cost of steel items is unbearable. Steel is the
main item that is used in tractor manufacturing,
they said.
Courtesy Business Recorder |
|
|
|
|
Pakissan.com; Advisory Point
|
|
