Pump prices expected to rise in coming days as input inflation leaves 10% cost gap; industry seeks GST cut

Coimbatore: Pump prices are expected to increase this month after manufacturers said steep inflation in raw materials, logistics, energy and compliance has pushed production costs sharply higher, leaving pumps underpriced by up to 10%In a joint statement, the Indian Pump Manufacturers Association (IPMA), Southern India Engineering Manufacturers Association (SIEMA) and Rajkot Engineering Association (REA) said MSME pump makers are facing “unprecedented” cost pressure as prices of key inputs such as copper, aluminium, stainless steel, silicon steel, cast iron, cables and allied components have risen significantly over the past year.The associations said manufacturers have implemented phased price revisions till May 31, but have been unable to fully absorb the escalation, making further increases unavoidable from June 1.They argued that pump price correction would have limited impact on overall project costs because other components in a pumping system -- pipes, cables, ropes, starter panels, valves and fittings -- have risen by over 30%. As a result, the pump’s share of total system cost has fallen to 15–20% from nearly 30% earlier.The industry also flagged a widening gap between quality-compliant products and cheaper alternatives, saying organised manufacturers adhere to BIS and BEE norms for reliability and energy efficiency, while inferior products undercut prices by compromising on quality and performance.To protect farmers and consumers and accelerate adoption of energy-efficient pumps, the associations urged the Centre to cut GST on pumps to 5% from 18%, citing potential power savings that could reduce states’ agricultural subsidy burden.