As the prices of steel, aluminium, copper and other essential raw materials required by the pump industry have increased once again, Pumpset manufacturers find no other way but to hike the products’ price.
The Southern India Engineering Manufacturers’ Association (SIEMA) & The Indian Pump Manufacturers Association (IPMA) shared that this is the 5th time the manufacturers are being forced to increase the prices in one year.
Price of Copper shot up by 66 % higher than last year, Aluminium by more than 68 %, Lamination Steel, Pig Iron and Castings are up more than 50 %. Along with this transportation costs have also increased due to fuel costs.
Farmers have been the major users of pump, and for them the costs of drilling and installing a bore well pump have more than doubled in a year. This huge increase in cost has led to them delaying the procurement and installation of pumps. As a result, the demand for pumps has significantly reduced in the Indian market. Due to this reduced demand, Pumpset manufacturers are working at only 40% of their capacities and are forced to announce mass layoffs and job cuts.
SIEMA alerted that most of the units may not be able to pay bonuses to their employees during this Diwali season. While the scenario seems companies like JSW, Tata Steel and SAIL have continuously reported record profits of 1000’s of Crores for the last 3 Quarters.
It is the view of SIEMA & IPMA that these profits are being generated at the expense of the Indian farmer, Indian MSME’s and the Indian labourer. SIEMA and IPMA jointly appeal to the Government of India to take immediate steps to reign in Raw Material prices for the survival of the industry.