This Diwali could drill a bigger hole in your pocket if you are planning to buy TV, fridge or microwave oven. Faced with low consumer demand, electronics and appliances players in the country have warned that prices could go up from October 1 if the rupee falls further.

The Consumer Electronics and Appliances Manufacturers Association (CEAMA) has said that prices of appliances could go up by 3-5 per cent from October 1 if the rupee depreciated further against the dollar.

Components costlier Manish Sharma, President of CEAMA, said the cost of components has gone up significantly and that it would be difficult for the industry to hold the price line.

“We will monitor the situation closely for the next two weeks. The rupee has fallen by 8-9 per cent in the last two months. But we are not passing the burden onto consumers. If the situation doesn’t improve, we will go for the hike,” Sharma, who is also Managing Director (India and South Asia) of Panasonic, has said.

In the city to take part in the second edition of India Gadget Expo (IGE-2015) on Friday, he said the demand for consumer electronics goods and appliances has been tepid. “Barring fridges, the demand for products has been lower than the supply,” he said.

The low demand could make most brands to defer capacity expansion plans by 3-4 years at least. “There is adequate capacity built in the country. It will take at least 3-4 years for most of the brands to make fresh investments. The government could, however, trigger growth by facilitating exports to the Gulf and African countries,” Sharma said.

Plea to govt In order bolster demand in both domestic and international markets, the government should have a relook at FTAs. “It’s common for governments to levy heavy import duties to protect local manufacturing,” he said.

The association also wants the government to roll back the increase in excise duty to 10 per cent from 12 per cent.

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