New Delhi: As there is a rise in the cost of input materials like copper, aluminium and steel and increase in ocean and air freights charges, experts dealing with the matter believe that the cost of televisions, refrigerator and other home appliances are likely to go up 10 per cent in the second week of January. The retailers in India are primarily dependent on the supplies from foreign markets, especially China when it comes to appliances. This is the main reason why most of the brands have decided to hike the price. Also Read - Kamya Panjabi Lends Support To Devoleena Bhattacharjee As She Seeks Justice For Divya Bhatnagar, Says, ‘I Can See Myself in U’

Nilesh Gupta, Director, Vijay Sales one of India’s biggest offline retailers told India Today Tech that the prices haven’t increased but the indication from the brands are that they will go up by 7-10% in the second week of January. Also Read - 'Rasode Mein Kaun Tha' Is Back! Saath Nibhana Saathiya 2 Makers Unveil Savage 'Kokilaben' In New Promo

Prior to this, LG Electronics India had also confirmed to PTI that it is going to increase the price by a minimum of 7 to 8 per cent across its products in the appliance category from January 1 next year. Also Read - Arjun Bijlani's 6-Year-Old Son Gets Coronavirus After Wife, Actor Says 'You Never Know...'

Why price hike?

The major reason behind the price rise is believed to be the increase in cost of input materials like copper, aluminium and steel. Moreover, for the TV manufacturers, the challenge is to find panels at the right price. The cost of panel has gone up, specifically for the small screen sizes.

Secondly, the transportation cost is expected to go up after new freight charges and regulations come into place. For those unaware, ocean freight is the method of transporting goods through the sea.

Notably, the Centre has recently drafted a new Merchant Shipping Bill to replace the existing Merchant Shipping Act. One of the main points of the new bill is to regulate shipping freight. The other reason in increase in cost is the shortage of containers.

However, there are other brands such as Sony who are still in the wait and watch mode and hope for things to improve in the first half of coming year. However, it is interesting to see if the price hike remains to be a permanent move or the industry manages to bounce back with the demand.