Tractor firms want rollout of new emission rules delayed; agri panel submits report

Mint

04-07-2025

New Delhi: A committee set up by the agriculture and farmers' welfare ministry to examine the implementation of tractor and machinery emission standards-phase V, or TREM V, has submitted its report, a senior government official confirmed.
The report comes amid the road transport and highways ministry (MoRTH) decision to implement the rules from 1 April next year.
However, tractor manufacturers, under the aegis of the Tractor and Mechanization Association (TMA), are lobbying to postpone the new rules.
They argue that TREM V-compliant tractors will become prohibitively expensive for small and marginal farmers due to their electronic systems and sensors, unlike the more mechanically oriented tractors.
TREM V rules will be applicable for all tractors with engines above 26 HP (horsepower). TREM IV rules, implemented in January 2023, apply to 50 HP engine tractors.
Higher costs could slow down farm mechanisation in India, which already trails global benchmarks, people associated with the tractor industry said.
"The industry is very competitive… with new rules, the tractor prices may go up by at least 15%, especially for small farmers who may find it difficult to afford these upgraded tractors," said Raman Mittal, joint managing director, International Tractors Ltd.
Currently, India's farm mechanisation stands at about 47%, compared to 60% in China and 75% in Brazil, according to A.S. Mittal, president of TMA.
Mittal said the Euro V-equivalent rules being pushed through may not suit India's farm and economic realities. European farmers use 200–250 HP tractors to manage vast landholdings. In India, the average tractor is under 50 HP.
"Countries such as the US, Australia, Brazil, and Thailand have also expressed reservations about the suitability of Euro Vnorms in agricultural applications," he added.
Mittal recently met agriculture and farmers' welfare minister Shivraj Singh Chouhan to express industry concerns.
The agriculture and highways ministries did not reply to queries emailed on 3 July.
New vs old
TREM V emphasises on adoption of advanced technologies like common rail direct injection, exhaust gas recirculation, diesel particulate filter and high-level electronics, ensuring compliance with stricter standards around emission limits.
TREM IV emission rules had mandated the adoption of similar technologies, but for above 50 HP engine tractors.
According to Crisil ratings, domestic sales volume of tractors is set to hit an all-time high of 9.75 lakh units in FY26, increasing 3-5% on-year, supported by an expected above-normal monsoon, higher minimum support prices (MSPs) for key cash crops and better replacement and construction demand.
'The Indian Meteorological Department's forecast of above normal monsoon should lift rural sentiment and reinforce farmer confidence, which is crucial for driving farm investments such as tractors. This, along with the expected rise in MSP for key cash crops, and pick-up in construction activity… should help drive 3-5% volume growth for tractors this fiscal," according to Anuj Sethi, senior director, Crisil Ratings.
'The anticipated TREM V-driven price hikes from April 2026 could trigger pre-buying in the last quarter of fiscal 2026, providing a boost to volume," Sethi said.
He said a similar trend had played out post the TREM IV rollout, when above-50 HP tractor sales dropped, and farmers pivoted to 41-50 HP models.
What Gadkari said
Road, transport and highways minister Nitin Gadkari has been promoting alternative engine technologies as a solution to both cost and pollution concerns.
'That's the reason I am giving an option to them that you can make the tractor on flex engines that is on 100% bioethanol," Gadkari told Mint in an interview.
"Already John Deere has developed that model, I've seen that model in Brazil. The second is electric tractor and third is we can make tractor on CNG. So, by which they can reduce the cost and the pollution. Actually, I am giving farmers the opportunity. Why are you not converting your tractor to ethanol, or even CNG, or even looking at electric?"
On being asked whether, the government will offer some support to equipment makers, Gadkari added, "You don't need support. It's a simple thing. Entire infrastructure is available to support vehicles-based on flex fuel engines. We have notified there will be 100% ethanol at pumps."
However, industry representatives said these technologies are still nascent in India and may not immediately solve the affordability and serviceability concerns of small farmers.
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