The Hush Post: The prices of electronics goods such as televisions and refrigerators are all set to go up soon since the companies are feeling the pressure on their margins due to a depreciating rupee.
The consumer durable industry earlier worked out their prices by estimating the 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 TV 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.
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.
The government earlier slashed 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.
The rate was brought down 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 worry 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.