Coimbatore: SIEMA President V Krishnakumar in a press note said that due to Covid 19, just like any other industry, pump industry had also incurred heavy loss.
Coimbatore: SIEMA President V Krishnakumar in a press note said that due to Covid 19, just like any other industry, pump industry had also incurred heavy loss.
He said April and May used to be the peak season for the pump industry but this year due to lockdown they could not get the benefit. Even though there was demand, factories were not allowed to open and hence could not manufacture pumpsets and whatever stocks were there could not be sold.
He said, "In June, all started opening their activities. Now the market is limping back to normalcy both in manufacturing and distribution, but the main problem faced by the manufacturers is the steep increase in the price of raw material in spite of overall slowdown in the economy. This is having a serious impact on the cost of the products which in turn may result in prices going up."
He said that copper is one of the main raw materials used in the manufacture of motors and also some parts of pumps. When compared to the price of copper as of 1st June, the price now is up by around 25%. Price of cable is reviewed at least two or three times because of this. Aluminum is another metal used in the manufacture of motors the price of which also has increased by more than 15%. He added that the price of lamination steel and castings has also increased by about 10%. Pig iron used for producing castings for the pump industry has also gone up by about 10%.
The exorbitant increase in diesel price has resulted in the cost of transportation going up for both incoming raw material and outgoing finished products. Diesel price hike during this period is around 14%. This has taken freight charges up by about 20%.
He added, "Shortage trained skilled labourers is also creating problems which also adds to the cost. Already manufacturers are facing severe cash crunch due to overall slowdown and added to that. the steep increases in the input costs is putting a lot of pressure on the cost of production. To cover this, they may be be forced to increase the price of pumps, which will adversely impact the farmers. Hence the association appeals to the government to look into these problems and do the needful to solve the raw material price issue."
He said April and May used to be the peak season for the pump industry but this year due to lockdown they could not get the benefit. Even though there was demand, factories were not allowed to open and hence could not manufacture pumpsets and whatever stocks were there could not be sold.
He said, "In June, all started opening their activities. Now the market is limping back to normalcy both in manufacturing and distribution, but the main problem faced by the manufacturers is the steep increase in the price of raw material in spite of overall slowdown in the economy. This is having a serious impact on the cost of the products which in turn may result in prices going up."
He said that copper is one of the main raw materials used in the manufacture of motors and also some parts of pumps. When compared to the price of copper as of 1st June, the price now is up by around 25%. Price of cable is reviewed at least two or three times because of this. Aluminum is another metal used in the manufacture of motors the price of which also has increased by more than 15%. He added that the price of lamination steel and castings has also increased by about 10%. Pig iron used for producing castings for the pump industry has also gone up by about 10%.
The exorbitant increase in diesel price has resulted in the cost of transportation going up for both incoming raw material and outgoing finished products. Diesel price hike during this period is around 14%. This has taken freight charges up by about 20%.
He added, "Shortage trained skilled labourers is also creating problems which also adds to the cost. Already manufacturers are facing severe cash crunch due to overall slowdown and added to that. the steep increases in the input costs is putting a lot of pressure on the cost of production. To cover this, they may be be forced to increase the price of pumps, which will adversely impact the farmers. Hence the association appeals to the government to look into these problems and do the needful to solve the raw material price issue."