Coimbatore Pump Manufacturers Announce Price Increase Amid Raw Material Crisis
The Southern India Engineering Manufacturers Association (SIEMA) announced on Monday that pump set prices are expected to rise by 7.5-10% starting April, citing continuing volatility in metal prices and supply uncertainties. The association has urgently appealed to the Union government to reduce the Goods and Services Tax (GST) on pumps from 18% to 5% to alleviate pressure on both manufacturers and farmers.
Unprecedented Raw Material Inflation Hits MSME Sector
The pump manufacturing industry, predominantly driven by Micro, Small, and Medium Enterprises (MSMEs), is facing severe stress due to an unprecedented rise in raw material costs over the past six months. Copper prices have surged by more than 50% in the last year, escalating from approximately ₹800-850 per kilogram to ₹1,200 per kilogram. Copper alone constitutes 25-30% of the material cost in several pump categories.
Simultaneously, sharp increases in prices of aluminium, steel, cast iron, polymers, cables, and other essential inputs have resulted in an overall manufacturing cost escalation exceeding 20%. This significant cost hike has severely eroded industry margins, pushing many manufacturers toward an existential crisis.
Phased Price Revisions and Industry Safeguards
To partially absorb these abnormal cost increases, manufacturers have already initiated a phased price revision of around 10% with reference to October 2025 price levels, scheduled for implementation before March 31, 2026. KV Karthik, president of the Indian Pump Manufacturers Association (IPMA), emphasized the broader impact, stating, "From August 2025 to March 2026, there has been a 10% price hike. Even before the ongoing West Asia conflict, we had decided to increase prices by another 7.5-10% to safeguard the industry from massive losses."
Karthik further explained that end users will witness at least a 30% price hike for the entire pump set, which includes pipes, wires, and other ancillary materials. He also called for temporary relaxation on safeguard duties on items like steel and certain polymers to help cool down import prices amid global uncertainty.
Appeal for GST Reduction to Support Agriculture
SIEMA, representing various pump manufacturers, reiterated that water pumps are primary agricultural machinery essential for irrigation, groundwater management, and rural livelihoods. In light of this critical role, the industry has urged the government to reduce GST on water pumps from 18% to 5%. This reduction aims to support farmers, sustain domestic manufacturing, and promote the adoption of energy-efficient technologies.
The association expressed deep concern over the cumulative impact of raw material inflation and supply chain disruptions, warning that continued absorption of these costs could devastate the MSME-driven sector. The planned price increase from April is seen as a necessary measure to ensure the industry's survival and maintain supply to agricultural communities.
