COIMABATORE: An unprecedented rise in copper prices has dealt a severe blow to Coimbatore's wet grinder manufacturing sector.
Manufacturers in Coimbatore, India's hub for wet grinder production, say a five-litre commercial wet grinder requires around 1.5 kg of copper used for winding motor coils, while residential models with a capacity of two to three litres use approximately 700 grams. With copper prices soaring, the overall cost of production has increased significantly over the past two months.
As a result, wet grinder manufacturers have issued notices to dealers informing them of an impending 20 per cent increase in prices. Industry representatives warn that further revisions in the coming months cannot be ruled out, especially as electricity tariffs and labour wages continue to rise.
The copper price shock has compounded long-standing challenges faced by the sector, which is largely run as a cottage industry in Coimbatore. According to R Soundrakumar, secretary of the Coimbatore Wet Grinders and Accessories Manufacturers Association (COWMA), the industry's downturn began following the 2016 demonetisation exercise.
"The sector never fully recovered after demonetisation. Soon after, a GST rate of 28 per cent was imposed on wet grinders, which came as a huge blow. The GST on wet grinders was later reduced to 18 per cent and, in 2022, to 5 per cent, offering temporary relief. However, the GST was revised upward again to 18 per cent in June 2024, adding to the financial strain on manufacturers," he added.
Beyond rising input costs and taxation, changing consumer preferences have further dampened demand. Sales of wet grinders in Coimbatore now hover at just 30 to 40 per cent of previous levels. Manufacturers attribute the decline to evolving food habits.
With many households opting for ready-made products such as sevai, chapathi and instant packaged flour instead of preparing traditional staples like idli and dosa batter at home, the demand for wet grinders has weakened.
"Several families have stopped using wet grinders altogether and now buy ready-mix batter or flour from shops," Soundrakumar noted.
The once-thriving cluster has seen a sharp contraction. From several hundred units in the past, only around 50 wet grinder manufacturers now operate in Coimbatore, with many entrepreneurs shifting to other professions.
Fifteen years ago, monthly production stood at approximately 2.5 lakh units. That figure has now fallen significantly, reflecting both supply-side pressures and a slowdown in demand.
Despite the challenges, manufacturers assert that wet grinders produced in Coimbatore continue to enjoy a reputation for quality and are supplied across the country. However, industry leaders caution that unless copper prices stabilise and policy support is extended, particularly in terms of taxation and input cost management, the future of Coimbatore’s iconic wet grinder industry could face further uncertainty.