West Asia Crisis Fallout: Coimbatore's Motor Pump Sets To Get Dearer

Coimbatore: The price of motor pumps is set to increase by around 10 per cent. This was announced by the Southern India Engineering Manufacturers' Association (SIEMA), citing continuous rise in the cost of raw materials, resulting from the shortages in crude oil and LPG, on account of the continuing hostilities in West Asia.

This is the second hike in the price of pump sets announced by SIEMA in the last few months. The present hike will be effective from April.

SIEMA President Mithun Ramadass stated, "The prices of raw materials required to manufacture pump sets have been rising continuously over the past six months. Given that copper accounts for 25-30 per cent of the total production cost, its price alone has surged by over 50 per cent in the past year. On an average, the price of copper has risen by Rs 800-1,200 per kg.”

He added that prices of other materials, including aluminum, steel, cast iron, wires and cables, have also increased by over 20 per cent, impacting the micro, small, and medium scale enterprises (MSMEs) that manufacture motor pumps.

Ramadass said that earlier, faced with an unavoidable situation, a decision was taken in October to implement a gradual price hike of 10 per cent before March 31. He added, “In light of the continued uncertainty surrounding raw material prices, we are compelled to implement a further price hike of 7.5-10 per cent, effective from April. Under these circumstances, the Central government must provide necessary assistance and concessions to safeguard the pump set manufacturing industry. Furthermore, we request that the 18 per cent GST currently levied on pump set production be reduced to 5 per cent.”

The rising cost of motor pump sets has not only adversely affected farmers, but also those constructing new homes.

Coimbatore, Tamil Nadu's second major industrial hub after Chennai, is home to various manufacturing units including those making pump sets, grinders and spare parts. It holds a leading position in the production of motor pump sets, contributing around 50 per cent of the country's total pump set production.

There are over 3,000 MSME pump set manufacturing units in operation, providing direct and indirect employment to over 1,00,000 workers. The motor pump sets manufactured here are sold in other states of the country, as well as exported abroad.

The period spanning January to June marks the peak season for pump set sales, driven by an increased demand on account of summer and water scarcity. However, manufacturers have reported that sales have been sluggish this year, resulting in insufficient business volume.