This note presents results from a July 2026 phone survey of 291 tractor service providers (TSPs)—who play a vital role in enabling timely land preparation and planting— offering early insights into the 2026 monsoon season.
Key Findings - Read the Report
- Acres prepared by TSPs declined by 18 percent compared to the previous monsoon season (24 percent in the Dry Zone, 11 percent in the Delta), with weaker demand reported by 58 percent of TSPs and attributed almost entirely to fuel costs and availability.
- Fuel constrained what TSPs could deliver. Nearly half (48 percent) operated below capacity, and 23 percent were unable to operate at all for a period during the season, averaging around 20 days. Fuel purchased outside official channels costs about 25 percent more than at official stations.
- Nominal service charges rose by an average of 44 percent, which TSPs attributed almost entirely to fuel. Diesel costs rose at more than twice that pace, suggesting TSPs recovered only part of the increase from their customers.
- Most TSPs (89 percent) extended credit for their services to their clients, always without interest, and 46 percent provided more assistance than in the previous season. Formal credit appears largely unavailable to TSPs.
- Revenue fell for 68 percent of TSPs while costs rose for 64 percent. Cash flow problems affected 30 percent, who coped mainly by drawing on other income and selling assets. Even so, those under financial pressure continued to extend credit to farmers.