The prices of electronics such as televisions and refrigerators will go up soon, as companies feel pressure on their margins due to a depreciating rupee. The consumer durable industry earlier worked out their prices by estimating dollar at around Rs 66-67. The rupee has, however, now crossed the 70 mark and is giving a tough time to the industry, which has to import key components, such as television panels and compressors. On Friday the rupee weakened by 13 paise to 70.24 against the US dollar on increased demand from importers and banks. Also Read - 5 Food Items That You Shouldn't Put in Your Refrigerator
The big players in the market, such as LG and Samsung have reportedly decided to increase the prices of appliances by 3-5-5 per cent from this weekend. Lenovo has also reportedly decided to increase prices by 3-4 per cent. Also Read - Samsung Galaxy M51 With 7000mah Battery to Launch in India: Check Specifications, Price, Camera Features
The government earlier cut GST rates on select white goods by 10 per cent. The consumer durable companies also passed on the benefit to consumers by cutting prices of commonly used items by 7-8 per cent. Also Read - Samsung Galaxy Buds Live Sale’s First Offer – Check Specifications, Price, Offer
The rate was cut from 28 per cent to 18 per cent on small screen TVs, fridges and washing machines.
Yesterday, the Indian rupee depreciated by 30 paise closing at 70.11 against the dollar due to renewed worries about a hike in US interest rates and rising global trade war jitters.
Forex dealers said a firm dollar in overseas markets, ahead of Federal Reserve Chairman Jerome Powell speech at the annual global central bank conference in Jackson Hole later in the day, weighed on the rupee.
The consumer goods industry has seen the lukewarm response during Onam, as Kerala saw the worst floods of the century this year. With the festival season soon to start, it is expected that consumer durable makers will stay away from any sharp increase in prices.
(With PTI Inputs)