he lack of credit is hurting rural sales, say cycle makers. “Bank advances are made available for cows, buffaloes and even hens, but there’s none available for a cycle,” says Mr S.K. Rai, Managing Director, Hero Cycles. In rural Bihar, Uttar Pradesh, Orissa and Bengal, a cycle is too expensive to buy. “At Rs 2,000, it works out to be one of the biggest one-time purchases.” State Governments have, however, become big buyers of basic cycles or roadsters. Their orders account for about 10 per cent of all cycle sales, or around 10 lakh a year.“The Karnataka Government alone bought more than six lakh cycles. Jharkhand has placed an order, we are also expecting a tender from Haryana, and Uttar Pradesh too,” says Mr O.S. Pahwa, Managing Director, Avon Cycles.Tamil Nadu, Madhya Pradesh, Chhattisgarh, Assam and Bihar are all distributing cycles under various schemes such as the Sarva Shiksha Abhiyan. The fall in sales of roadsters, which account for the majority of cycles made, would have otherwise been sharper. Read more at http://www.thehindubusinessline.com/2009/01/20/stories/2009012051790100.htm