Chennai: A joint meeting of three major associations of pump manufacturers of the country, was held recently, to discuss the raw material price increase, and its subsequent impact on the stakeholders.
In a press release here, K V Karthik, President of Southern India Engineering Manufacturers Association (SIEMA), said,
“Pumpset manufacturers operate with thin margins and such an increase in cost cannot be absorbed by the manufacturer. Pump and motor prices will have to be increased by 10 per cent for sustenance. The Indian farmer is totally dependent on pump for irrigation. The cost of installing a new pumpset with accessories like copper cable, pipes and fittings have gone up by more than 20 per cent. This price increase can lead to a slowdown of the industry and decrease in farm output as the farmers will put off their requirements.”
Moreover in Tamilnadu, there are 18 lakh agricultural pumps, of which nearly 15 per cent is replaced annually besides more than this in other major agricultural cultivation districts like Kerala, Karnataka, Telangana, Andhra Pradesh, Gujarat, Punjab, Haryana and more.
The share of Indian pumps and motors in the global market is around two per cent. We had a hope that after Covid the share could increase as the world was looking towards India instead of China. The overseas customers have started accepting price increase of upto 10 per cent. But further increase will make our pumps un-competitive in the international market.
“Additionally, severe shortage of raw materials particularly electrical steels, PVC resin, Iron ore and steel scrap are providing an opportunity for the middle men to hoard material and drive up prices even further,” he added.
“If this trend continues many MSME units will close down very soon leading to job losses. Also booked export orders cannot be shipped for want of raw materials. This will create a negative image about Indian pumps in the world market,” he stated.
Karthik also requested the government to step in and to control the price rise and aid the survival of the industry.