Steep increase in price of raw materials that go into manufacture of pumps has resulted in hike in production costs, according to V. Krishnakumar, president of Southern India Engineering Manufacturers’ Association.
Pumpset manufacturers may have to go in for higher pricing of the pumpsets to cover at least part of the production cost, he said. This will, however, affect the farmers as agricultural pumps are one of the main products made by the manufacturers.
Mr. Krishnakumar said in a press release that the pump industry has incurred heavy loss during the pandemic. During April-May, which is the peak demand period for the industry, factories could not operate or sell the products because of the lockdown.
In June, the manufacturers resumed production and the industry is now limping back to normalcy, both in manufacturing and distribution. “But the problem faced by the manufacturers is the steep increase in the price of raw material inspite of overall slowdown in the economy. This is having a serious impact on the cost of the product which in turn may result in a price increase,” he said.
Copper is one of the main raw material used in the manufacture of motors and also some parts of pumps. Copper prices now are 25 % higher than the prices quoted in the first week of June. Price of cable is revised at least two or three times because of this. Aluminium is another metal used in the manufacture of motor and its price has jumped more than 15 %. Cost of lamination steel, pig iron and castings are up 10 %. Higher diesel prices have pushed up the transportation costs for raw materials and end products.
The Association appealed to the government to look into the problems and do the needful to control the raw material prices.
Published - September 22, 2020 10:28 pm IST
