Fiat Tractor Sales Recovered in the First Month

After fiscal year 19, Fiat tractor sales recovered in the first month of the current fiscal year, while Massey Ferguson (Millat) was still in hot water. Fiat sold 1,122 units in July and 814 units in July 2018. In 2018-19, sales fell by 35% to 17,993 units. Sales of Massey Ferguson, which had already fallen from 42,707 units of FY18 to 32,018 units of FY19, could not recover 1,938 units compared to 3,006 units in July 2019.

Mohammad Shahid Hussain

Mohammad Shahid Hussain described the situation of CEO Al Ghazi Tractors Limited as challenging and difficult despite Fiat's increased sales in July 2019. There seems to be a serious cash crunch within the peasant community," he added. "As a result they are especially shy to invest in mechanization and new tractors," he said. Crop production and yield may be another reason why farmers over the past year have hardly survived to achieve their final goal and can only pay debt, not surplus. He added that struggling economies have slowed all types of economic activity and lukewarm sentiments.

He said demand has diminished production plans because of reduced demand. This reduction is also directly related to the supplier. The supplier hires a much larger manpower than the manufacturer, which keeps rolling the wheels of the industry. Shahid said, “We didn't fire such employees, but because the number of orders from the assembler is small, the cost of maintaining normal employment levels is impossible for cost reasons, given the depressing demand, so the supplier must take that path.

For future sales prospects, “If the government cannot afford to support farmers and industry with special measures, the overall situation will probably be similar by the end of 2020. One of the major challenges the tractor industry is currently facing is the accumulation of three refunds of overdue sales of up to 5 billion rupees, which are increasing every month. No refunds have been made since May 2018, resulting in huge borrowings and funding costs.

Al Ghazi said that the best strategy in this situation is to reduce costs and supply to the market on demand. "We also need to stay in grandpa mode to understand the challenges faced by suppliers and to do our best to assist in difficult times. Shahid said that some absorption of the increased input costs and exhaustion of margins would now have to be realistically accepted by the assembler to roll the ball.

Millat Tractors Limited

An official at MTL (Millat Tractors Limited), who asked not to be named, said he is focusing on tractor exports to African countries where demand for agricultural machinery is growing. He said rupee depreciation did not fully surpass the consumer's impact against the dollar. Despite sales and production declines over the past 13 months, the company hasn't eliminated its employees and employees so far, us says. If sales continue to decline over the next few months, he said, the company may need to take drastic measures, such as reducing the load on its employees.

He said future sales will depend on farmers' incomes and crop yields, especially in sugarcane, cotton, rice, wheat and other crops. In addition, tractor sales rely on public and private sector construction activities and have been slow over the past year. The country's agricultural performance during the FY19 period was stagnant. Overall, the sector grew 0.85%, much lower than the target of 3.8pc at the beginning of the year.

Economic survey 2018-19 showed poor performance in the agricultural sector, mainly due to insufficient water supply, reduced arable land and reduced fertilizer emissions. The crop sector experienced a negative growth of 4.43pc. Sugarcane production decreased by 19.4pc to 67.174 million tons, cotton 17.5pc-9.861m bales and rice 3.3pc-7.202m tons.

The United Nations Food on Tuesday

United Nations Food and Agriculture Organization (FAO) warned that the current situation with Pakistan's swarms of grasshoppers is "most serious" as second-generation insects grow. According to the FAO's Locust Watch report, the risk of further breeding remains, with the potential for swarms of grasshoppers from late September, which could increase the number of grasshoppers. Yemen and India are in a similar situation, and in Ethiopia and Eritrea, things can get worse.

During August, the hens lay eggs mainly in Kolitan, mainly in the country where the hopper group was formed near the Indian border, and in the Tarpaka desert, to a lesser degree. Since mid-August, the number of grasshoppers has increased due to hatching. Adults also lay eggs, and hoppers formed groups in the Las Bella region west of Karachi. According to this update, nearly 86,000 hectares were processed during the month of August, of which 16,455 hectares of land were processed in Pakistan. 

The breeding will continue in the Cholistan and Tharparkar deserts with the formation of bands of hoppers and bands with small herds formed by the end of September, along with other generations of hatching and new immature adult groups. Meanwhile.

The FAO has worked with the Punjab Federal Plant Protection and Agriculture Department to complete a training program that builds the capacity of public officials and technical staff to prepare for the possibility of grasshopper outbreaks in Pakistan. In the Bahawalpur area, 500 local farmers attended the Desert Grasshopper Workshop to raise general awareness of various types of grasshoppers.

Sui Northern Gas Pipelines

The production industry instructed Sui Northern Gas Pipelines Ltd (SNGPL) to continue supplying unpaid secondary gasified liquefied natural gas (RLNG) to two urea companies in Punjab by the end of November. The supply of RLNG, which subsidized urea manufacturers for a certain period of time, is permitted by the Cabinet's Economic Coordination Committee (ECC), which approved the supply and price subsidies of RLNG for both urea companies during the period ending on August 31. A senior SNGPL official said on Saturday, September 1, that he ordered the Fatima fertilizer and Agritech Ltd to stop supplying 70mmcfd RLNG.

According to industry sources, the two companies are currently receiving subsidized import gas for nearly a year, and the government is receiving cash subsidies of about 120 billion rupees per bag per urea (or about 18 billion rupees of 75 million tons per year in total). Produced by them. According to the ministry's letter, an anonymous source added that the summary was being moved to seek ECC approval to continue supplying RLNG subsidies to two plants over the next three months.

The cost of urea produced from RLNG is Rs2,400 and local gas is Rs1,000. An urea company executive who asked for anonymity said, "RLNG-based urea production costs far more than imported fertilizers. The urea industry currently had nearly 500,000 tons of unused production capacity due to the inability of local gas for some plants.

Gross domestic product is estimated at 5.6 million tonnes, 5.6 million tonnes (excluding 750,000 tonnes of RLNG-based output). The National Fertilizer Development Center (NFDC) estimated that during the coming kharif season, the availability of fertilizer is about 3.4 million tonnes (excluding RLNG-based elements) for 3 million tonnes.
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