Tractor Makers Urge Government to Delay TREM V Norms Rollout

Key Highlights:

• TREM V norms may increase tractor prices by 15%.

• Small and marginal farmers are likely to face financial strain.

• India uses mostly tractors under 50 HP tractors, unlike Europe.

• Farm mechanization in India stands at just 47%.

• The government is reviewing the industry's request for a delay.

India’s leading tractor manufacturers are requesting the government to delay the implementation of the upcoming TREM V emission norms, scheduled for rollout in April 2026. Their main concern is that it will increase tractor prices, affecting small and marginal farmers the most.

Industry Raises Cost Concerns for Small Farmers

Tractor makers have warned that the new emission standards could make tractors costlier, especially lower HP models, which are commonly used by small farmers. Raman Mittal, Joint Managing Director of International Tractors Ltd,mentioned that these tractors could become at least 15% more expensive, adding financial pressure on farmers already dealing with rising input costs.

Global Comparison and Usage Differences

A.S. Mittal, President of the Tractor Manufacturers Association (TMA), highlighted that countries like the US, Australia, Brazil, and Thailand are also raising questions about the adoption of Euro V-style norms for farming equipment. He also pointed out that there's a big difference in tractor usage between India and developed countries.

• In India, most tractors sold are under 50 HP

• In Europe, tractors are usually 200–250 HP

Applying the same emission norms across such different markets, according to manufacturers, may not be practical or beneficial.

Impact on India’s Farm Mechanisation

Another major concern is the impact on farm mechanization in India. Currently, the mechanization level in India stands at just 47%, while China is at 60% and Brazil is at 75%. Industry leaders worry that higher tractor prices could slow down the adoption of machines, especially for smallholder farmers who already face affordability issues.

Government Review in Progress

A special committee under the Ministry of Agriculture has already submitted a report regarding these concerns. The government is currently reviewing the matter to decide the best way forward.

Also Read: Domestic Tractor Sales Report June 2025: Market Grows 10.49% with 1,12,678 Units Sold

CMV360 Says

Tractor manufacturers are urging a delay in the TREM V norms to avoid burdening small farmers with higher costs. With India’s low farm mechanization rate and average tractor usage below 50 HP, applying global emission standards may not be practical. The government’s decision, currently under review, will significantly impact farmers and the agricultural equipment industry.