Rupee depreciation pushes up prices of electronic goods

Source: The Hitavada      Date: 07 Sep 2018 09:46:34



Business Bureau

Citizens planning to buy electronic goods in the current season will have to shell out extra bucks as the prices of these products have been witnessing hike mainly because of depreciation of Indian currency against the US dollar. Apart from this, rising prices of petrol and diesel are also taking up the prices of electronic goods.

Prices of televisions sets, refrigerators, air conditioners, washing machines and microwave oven among other items have gone up by 3-5 per cent ever since rupee starting tumbling against US dollar. Almost all the major manufacturers have revised rates of their products.

The Indian rupee on Thursday touched a level 72 against the US dollar. It is for the first time that the Indian currency fall to such a low level. According to economists the fall in rupee is due to the Sino-US trade tensions along with high crude oil prices and outflow of foreign funds.
Whatever may the reasons but the fact is that the electronic goods manufacturing companies have been paying extra for imported raw material which is eventually forcing them to revise the prices.

Experts in the market observed that the real impact of the rupee depreciation would be visible after couple of weeks when newly procured goods would come in the markets.
Director in Lotus Electronics, Nagpur - Gaurav Pahwa said that the impact of rupee depreciation has been reflecting on various electronic products like televisions, refrigerators, computers and cameras.

“Many companies have already increased the prices while others are on the verge of doing it. Rates have been going up in the range of 2 to 5 per cent,” he said adding that the prices may further going up in coming days.

“We have been trying not to pass on the burden of rupee depreciation to our customers. But beyond certain level, we have no other option but inflate the prices,” he added.
In the meanwhile, A K Gandhi of AK Gandhi Electronics, said that there is no impact on the prices at this point in time. “The markets is already experiencing unsatisfactory demand for electronic good and thus we have not increased the prices. But the prices will certainly go up within next 30 to 35 days,” he said.

Gandhi also said that the prices are likely to swell during Diwali festival when buying is at its peak. “It may squeeze profit margins of the dealers but I think there will be significant impact on sale,” he said. Director in Taori Marketing - Santosh Taori also said that prices are bound to go up. “The rupee has dipped considerably in the recent past which will certainly push the prices of electronic goods. However, taking into account the sluggishness in the market, companies are showing no courage to hike the prices. But they will have to revise the pricing very soon,” he said.

Taori said the rupee deprecation and soaring prices of fuel would together inflate the prices. “The possibility of price rise in the range of 5 to 10 per cent in near future cannot be ruled out,” he observed.