CHENNAI, Jan 11 (The Connect) – Farmers, agitating over the new Central Bills, are in for another shocker with the rise in pump set costs.
A joint meeting of three major associations of pump manufacturers of the country has drawn the government’s attention to the rise in copper, stainless steel rods and electrical steel and called for ban on iron ore exports to meet the local requirements.
Indian Pump Manufacturers Association (IPMA), Southern India Engineering Manufacturers Association (SIEMA) and Rajkot Engineering Association (REA) representing 99% of the pump manufacturers of the country met here recently to discuss the astronomical raw material price increase. They observed that the prices of copper has gone up from by 57%, stainless steel rods by 47 %, EN 8 Steel Rods by 35%, electrical by 20%, CRCA Steel by 45% and aluminium by 15% increase.
The impact on the overall costing of the pump set is 15%. Pump set manufacturers operate with thin margins and such an increase in cost cannot be absorbed, the meeting observed.
K.V.Karthik, president of SIEMA, said the industry requested the centre and state governments to step in and to control the price rise and help the industry survive.
The Indian farmer is totally dependent on pump for irrigation, and the price hike can lead to a slowdown of the industry and decrease in farm output as the farmers will put off their requirements.
The Rs 16,000 crore Indian Pump Industry which employs 20 lakh people directly and indirectly was in doldrums last year due to COVID-19 lockdown. In such a situation, the industry is faced with a slowdown due to the huge increase in raw material prices.