RBI Issues Circular On Levying Unfair Interest Charges On Customers

If you are planning to buy a brand-new television set, then, you will have to shell out more.  According to news daily, ‘Business Standard’ televisions may become costlier by around 10 per cent in April 2024. Television manufacturing companies have faced rise in manufacturing cost. Hence, the price rise. Since, Covid-19 pandemic, TV prices have conitunuously increased in India. And the problem is that retailers have anticipated more price hike rounds even after the one in April 2024.

Why TV prices are on the rise?

This is because, prices of open cells that are used in manufacture of TV sets, have gone up by 30-35 per cent in the last one year. Already companies had hiked television prices earlier this year. And the April price hike will be the second round that they may take due to the same reason. Due to elevated prices, demand for television sets has also dipped since the festive season, last year.

What is Open Cell?

Open cell is a prominent raw material used in TV manufacture. The prominent raw material accounts for 60 per cent of total manufacture cost of television sets.

How much open cells India imports?

India is dependent on China for import of open cells. According to Volza, an organisation, that keeps record of export- import data of different countries, India meets a major chunk of open cells requirements from imports. Infact, India is the biggest importer of open cells in the world. Whenever, China manufacturers of the main component of TVs hike prices, television manufacturers in India are left with no choice but to sell TV sets at higher prices to retailers  in the country. Then, it is up to retailers how they want to pass on the hike on to the customers. Generally, retailers pass on the hike in installments in the market. And this is what they have said to the news daily how they are going to go regarding the rise in acquiring prices of TV sets.