Coimbatore’s wet grinder industry is seeking a reduction in Goods and Services Tax from 18% to 5%, as manufacturers say shrinking demand, changing food habits and rising logistics costs have sharply reduced production in one of the city’s recognised industrial clusters.
The demand was raised by Soundirakumar, secretary of the Coimbatore Wet Grinder and Spare Parts Association, in a report published by Dinamalar. The industry has been producing wet grinders in the district for more than 70 years, and manufacturers claim that Coimbatore accounts for 80% of India’s wet grinder production. The product also has a Geographical Indication tag.
According to the association, more than 600 companies were involved in wet grinder manufacturing in the past. That number has now fallen to more than 200, while over 20,000 people continue to depend on the sector, the association said. It added that nearly half of the companies previously engaged in the industry have closed because of continuing pressures.
The decline is also visible in production volumes. Coimbatore manufacturers produced an average of 200,000 wet grinders a month until 2010, according to the association. Between 2011 and 2016, they manufactured 1.75 crore grinders supplied under a Tamil Nadu government distribution programme. Current monthly production has fallen to between 80,000 and 100,000 units.
The industry produces several categories, including ordinary, table-top, tilting and commercial tilting grinders. Ordinary models range from two litres to 40 litres, while tilting models range from two litres to 60 litres. Table-top grinders include arm, arm-free and mono-roller variants. Spare parts manufactured in Coimbatore are also supplied to grinder companies located in other parts of India, making the cluster relevant beyond finished-product manufacturing.
Soundirakumar attributed the fall in household demand to changes in food habits and working patterns. The association said that ready-made batter packets have become more common, while food-delivery platforms have made it easier for households to order prepared food. It also said that the earlier practice of giving a wet grinder as part of wedding gifts has declined. With both spouses often working, the time required to soak ingredients, grind batter and clean the appliance has become a constraint, according to the association.
The sector also faces higher costs in export markets. The association said transporting grinders abroad costs an average of Rs 1,000 per kilogram, a rate it described as manageable mainly for larger companies. Coimbatore grinders were previously exported to countries with South Indian communities, including destinations in Africa, the United States and the United Kingdom. The association said exports now face greater difficulty, while shipments to Kerala, Karnataka, Andhra Pradesh and northern parts of India continue on a smaller scale.
The association said wet grinders attracted 5% GST until 2023, but the rate has since risen to 18%. It is seeking a return to the earlier rate, arguing that lower taxation could support higher production. The report did not include a response from the Union government or details of any formal decision on the demand.
