Pump manufacturers in doldrums due to rise in raw material price

Coimbatore

“There were good enquiries in the second quarter (July to Oct) as the world was looking towards India instead of China for buying pumps. Even overseas customers accepted a price increase by up to 10 per cent. However, further increase in prices will make our products un-competitive in the international market,” said KV Karthik, President of Southern India Engineering Manufacturers Association (SIEMA)

The market volume of the Indian pump industry is pegged at Rs 16,000 crore and the sector employs around 20 lakh people directly and indirectly. The share of Indian pumps and motors in the global market is around 2 per cent.

“An increase in prices of pumps and motors is likely to take a toll on the agriculture sector as the cost of installing a new pump set with accessories like copper cable, pipes and fittings has gone up by more than 20 per cent. In Tamil Nadu, around 18 lakh pumps are being used in agriculture. Of this, nearly 15 per cent are replaced annually,” Karthik added. Demanding the government to step in and control price rise for the survival of the pump industries, SIEMA claimed that if this trend continues many MSME units will close down leading to unemployment. “Also, export orders could not be shipped for want of raw materials and this will create a negative image on Indian pumps in the world market,” he said.