New Nepal-made tractors hit the market

Kathmandu, Jan. 13

A new brand of tractors made in Nepal has hit the market.

Chandragiri Machinery Udhyog has begun the production and distribution of Chandragiri Tractors with the capacity of 6HP and 9HP. The company launched the new products at the Agri-Mechinery Exhibition 2080, held in Pokhara a week ago. The mini tractor with a new look bearing Nepali brand had drawn the attention of many at the expo.

What surprised many in Pokhara during the launch of the product was its price. The simple-looking 6 HP tractor is priced at just Rs. 175,000 while the 6HP comes at Rs. 200,000. The company has coloured the machine parrot green which has made the product attractive and cool.

Chandragiri has conducted a year-long test with the tractors before launching them in the market. Within a couple of days of the product hitting the market, the company has received demand for as many as 50 tractors.

"We have got many inquiries and bookings for the newly launched tractor. People have shown love to the domestic product," said Gaurav Shrestha, Managing Director of the company.

However, the company can produce only 15 pieces of tractors a month. Shrestha said that the capacity would be enhanced if the demands went up. He claimed that the new tractor gives better mobility, safety and durability compared to the two-wheel tractors currently available in the market.

Chandragiri tractors feature four wheels, a comfortable seat for the driver, a fuel tank, and a roof. It can carry goods by affixing a trolley, plough field and perform many other agricultural work.

The company has been producing agricultural inputs for a decade while it has been in the trading of agricultural machinery for more than one and a half decades. It recently launched millet cleaning machines and grading machines as well. The millet cleaning machine was also launched at the expo organised by the Nepal Agricultural Machinery Entrepreneurs Association (NAMEA) in Pokhara.

According to the experts, Nepal imports more than 95 per cent of agricultural machines from India, China and other countries. President of NAMEA, Krishna Sharma said that the market of agricultural equipment in Nepal is worth about Rs. 24 billion and the country is spending hard-earned foreign currency to buy the machines. But often farmers here don't get the machines that fit the needs of Nepali farms and geography.

Shrestha said that the government's policy is yet to be made favourable for the domestic industries. "There is more than 50 per cent value addition in the agricultural machinery produced in Nepal. Chandragiri Tractors have also 40-50 per cent value addition but we have to pay up to 40 per cent customs duties for the items like tyres and motors which are used in the machines," he said.

He stated that the industries should be allowed to import such goods as raw materials which will significantly reduce their customs duty. Similarly, the industries have to pay 13 per cent Value Added Tax (VAT) on iron as well which contributes to the increased price of the product.

According to Shrestha, if the government waives the VAT on raw materials and reduces the customs duty and other taxes, the price of Chandragiri tractors could go down by as much as 40 per cent. 

Published in The Rising Nepal daily on 14 January 2024.