LAHORE - Some tractor makers of the country are contemplating to move Competition Commission of Pakistan against the Sindh government regarding the soon-to-be launched tractors scheme of the province.
“The government of Sindh has track record of doing favoritism in its tractors schemes, so this time again they may follow the same path which worries the tractor makers,” said industry sources.
“The CCP should monitor the tractors schemes announced by the provinces for farmers whether they maintain transparency or not, since a number of reports mentioned irregularities in such schemes,” sources said.
There were reports about previous tractors distribution that most of the tractors were marked for purchase from a single company which had a meager share in the market with lowest sales volumes while the major players were given only a small chunk of the remaining tractors.
“Maximum benefits were provided to a single company that had lowest sales volume, giving unfair advantage to the lowest performer of the industry,” said a source in the industry. “If scheme comes as per previous pattern then around 70% tractors will be purchased from a single manufacturer which has the lowest sales and production capacity in the industry,” he added.
As per the data on website of Pakistan Automotive Manufacturers Association for the duration July 2015 till December 2015, Fiat (New Holland) sold 4,020 units against 7,916 units of Millat (Massey Ferguson) while Orient IMT sold only 439 units. He claimed farmers prefer after sales services of tractors that provide them periodic or as-required maintenance or repair by its manufacturer. They evaluate tractor performance as per their land requirement so they should be free to take their own decision for the purchase of the tractor.