Televisions, washing machines, microwave ovens, and other home appliances are going to get costly this month due to a 15-40 per cent increase in input costs. It is anticipated that washing machines and air conditioners (ACs) prices may go up by 8-10 per cent, and the rates of refrigerators might witness a spike of 12- 15 per cent. On the other hand, the prices of televisions could rise by 7-20 per cent.
The prices of home appliances could rise due to increase in input material costs, The Economic Times reported. Copper, zinc and aluminum rates have been increased by 15-20 per cent in December, while ocean freight cost has risen 40-50 per cent.
The cost of television panels is up by 30-100 per cent due to global storage and plastic's cost has climbed by 30-40 per cent. The price of MDI, a chemical used in making foams, used in refrigerators and chest freezers, has shot up 200 per cent.
The daily said that companies are aware that such a price hike might impact the pace of recovery in the next quarter but they cannot absorb the inflation in input costs.
Kamal Nandi, who is a business head of Godrej Appliances, said the festive season stock is over and therefore the companies will have to pass on the price hike to consumers from later this month or early next month. This will be the first time in several years that prices will shoot up by such an extent in one go, Nandi added.
Haier India president Eric Braganza said the saving grace has been the stable exchange rate, else the price hike would have been much more.
Meanwhile, the Bureau of Energy Efficiency (BEE) has postponed energy labelling upgradation norms for ACs by a year to 2022, which has helped as any tightening leads to a price hike. Refrigerator energy label norms too will only be upgraded in 2022.