Consumer electronics makers on Thursday said they have no option but to hike prices of consumer goods by 5-7 per cent for Indian consumers due to rising raw material costs and delays in shipments amid the lockdown in China. .
In view of the current situation of Kovid-19 in China, the electronics industry across the world is facing shortage of raw materials.
Avneet Singh Marwah, CEO, Super Plastronics Pvt Ltd (SPPL), told IANS: “In the near future, we see a dire situation in India, if the shipments continue to be delayed by 4-5 weeks.”
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“Lack of raw material has created huge volatility in the prices and as a company we will have to increase the prices by 5-7 per cent,” he said.
Smartphones, laptops, TVs, ACs as well as imported watches are going to get expensive. Industry experts say that the prices of these consumer goods can go up to 10 per cent.
According to Anand Dubey, CEO, Indkal Technologies Pvt Ltd, the industry has been facing issues in the supply chain ever since the pandemic started.
“The Russia-Ukraine war has compounded the problem as these countries are two of the largest producers of key minerals used in the manufacture of chips,” Dubey told IANS.
“Indeed, a longer period of war could result in further crises and complications. While we are taking several strategic measures to control the price impact of all these issues, it remains a challenge to maintain current prices. Yes,” Dubey said.
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The electronics sector is already increasing the prices by 2-3 per cent every quarter due to the COVID-19 pandemic.
With the disruption in the supply chain, fast-moving consumer goods (FMCG) companies have also been forced to increase the prices of daily use products. The lockdown in China has delayed shipments across industries and consumer electronics has been hit hardest.
In June and July, the e-commerce platform will see major annual sales in India. Experts are worried that the current crisis could extend into the festive sales season as well.
“This will definitely impact the overall demand for the sector as India is a price-sensitive market. Unless stability is brought in, the price of most products to the end consumer will continue to rise.”
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