The government has delayed the implementation of emission standards for the tractor industry

According to the Tractor and Mechanisation Association, the delay was made at the request of Punjab combined harvester manufacturers.

The government may postpone the implementation of new emission standards for farm equipment for another quarter. According to a senior industry executive, the current deferment was considered in response to a request from combined harvester manufacturers in Punjab.

The move may provide a three-month reprieve to manufacturers of combine harvesters, power tillers, and tractors with engine capacities greater than 50 horsepower (HP), who are already under pressure due to price increases.

The Centre had previously decided to implement Bharat Stage TREM IV emission regulations, which are equivalent to Euro Stage IV standards, on October 1, 2022. However, this is the third time the government has delayed the implementation of stricter emission standards for the tractor industry.

According to the Tractor and Mechanisation Association, the delay was made at the request of Punjab combined harvester manufacturers to the Ministry of Road Transport and Highways.

The ministry had taken into account the manufacturers' request and granted them a three-month reprieve. Because tractors are in the same category, it will also apply to this industry, according to a senior representative of the Tractor and Mechanisation Association (TMA).

Farm equipment prices are likely to rise by 10-15% following implementation. This expectation may have influenced demand in a market that has seen good offtake during the holiday season.

The extension affects 8% of total tractor volumes, while a large proportion of the industry with less than 50 HP will continue to be governed by TREM III A norms. However, the following implementation will shrink the market share of above 50 HP tractors due to the subsequent price increase.

With revised norms, prices of above 50 HP tractors are expected to rise by 15-16 percent in the range of Rs 1-1.25 lakh due to new technology upgrades and electronic usage.

In the last 12-18 months, the tractor industry has seen four or five rounds of price increases ranging from 2-2.5 percent. According to industry experts, the recent deferment will provide a reprieve for approximately 70,000-80,000 tractors (size 50 HP and up) that are set to see a significant price increase in the coming days.

Furthermore, the industry will see category reconfiguration as OEMs revamp their product portfolio with tractors offering higher torque at lower HP, potentially leading to a shift towards a 41-50 HP product mix at the expense of the over 50 HP segment.

As a result, farm equipment manufacturers have continued to manufacture according to current industry standards until the end of December and can register their vehicles until June 2023.

TREM-III A emission standards are currently in effect in India for tractors of various horsepower categories, having been implemented in April 2010-2011.

New emission norms for the tractor industry are to be extended until December 31, and the new norms are to take effect in January next year.

When the ministry of road transport and highways (MoRTH) notified amendments to the Central Motor Vehicle Rules 1989, the revised emission norms for tractors were initially scheduled to go into effect in October 2020. Due to the coronavirus pandemic, this was initially delayed by one year and then again by six months.

India adopted Bharat Stage (CEV/Trem) IV-V emission standards for diesel nonroad engines used in construction and agricultural equipment in March 2018. The BS (CEV/Trem) IV emission standards correspond to EU Stage IV standards, while the BS (CEV/Trem) V standards correspond to EU Stage V standards. The standards for CEV and Trem were separated and the nomenclature changed in September 2020.

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