Department of Economics and Sociology, Punjab Agricultural University, Ludhiana-141 004, India
Tractors form an integral part of farm mechanisation and have a crucial role to play in increasing agricultural productivity. Owing to the changing dynamics globally and nationally present study was conducted to analyse the tractor density and factors determining the demand for tractors in Punjab. The tractor density in Punjab was 119.6 tractors per thousand hectares of net area sown. 63.8 tractors per thousand hectares of gross cropped area, 122.15 tractors per thousand hectares of net irrigated area, 64.49 tractors per thousand hectares of gross irrigated area in 2009–10 which was very much high compared to other states of the country thus proving that Punjab agriculture as highly mechanised and capital intensive. The analysis on determinants of demand revealed that factors like lagged demand, area under high yielding variety and real price of tractor remained significant variables contributing for the increase in demand for tractors in the state. So it can be said that the farmers are purchasing tractor widely not only out of their farming necessities but also because tractor has become a status symbol for the farming community.
Tractor, density, demand, determinants