News
Hardware and home appliances still carry high price tags
View(s):By Kasun Warakapitiya
Though the Government relaxed import restrictions on 243 items including construction items, ceramic and bathroom items, materials used in carpentry, plastic furniture as well as electro-mechanical domestic appliances, consumers are yet to reap the expected benefits.
People complain that prices of switchboards, electrical wire as well as other electrical items remain high, and that prices of electrical appliances are high despite the Government allowing imports.
Materials used in carpentry, digital storage disks, plywood and rubber products, too, remain expensive.
People say vendors are selling old stock, or that the items are still in short supply. Pix by Akila Jayawardena and Priyanka Samaraweera
People say vendors give excuses for the high prices of items for which the import ban no longer applies. They say they are selling old stock, or that the items are still in short supply.
Some shops selling electrical items also give discounts, but prices are unchanged.
The general secretary of the Electric Users Association, Sanjeewa Dammika told the Sunday Times the prices of trip switches, electrical wire, and plastic wire casings remain high.
The prices of kitchen items, home appliances such as rice cookers, heaters, and electric kettles, also remain high, he said. When asked, the shop owners claim that the rupee had depreciated against the US dollar, therefore they have to pay more to import.
An owner of an electrical items company Thaliana Opatha told the Sunday Times that he sells most imports by increasing discounts.
The rupee appreciation is short lived and importers increase discounts and keep the prices unchanged.
He added that prices of electrical items should drop, but as old stocks remain, vendors are selling them at previous prices.
“We cannot bear losses, therefore the old stocks have to be sold at that price, only after new stocks arrive after two or three months only we can see a difference,’’ he said.
Prices of hardware remain high as vendors make profits by selling cheaply acquired taps, plastic items as well as shower heads for previous prices claiming they are old stocks.
It was noticeable that imported hoses, taps and other items needed for construction cost less after import restrictions were removed.
Lahiru Madusanka, 36, a hardware store owner at Wijerama said that most items such as plastic taps, wires, and bidet showers can be purchased wholesale at cheaper prices, but most retailers sell at higher prices.
He said he advertises hardware at cheaper prices on a website and also sells them cheap. “The bidet shower which I sell for Rs 800 is sold at Rs 1,800 elsewhere, still most hardwares sell goods at the old prices when the rupee remains depreciated.’’
A dealer of bathroom fittings and ceramics in Nawala, Shahmy Haussain, 30, said he had not reduced prices because there are no new shipments.
“I paid so much for these stocks, until these old stocks are finished I would sell them at the old prices, I will only think of price change according to dollar rate after I acquire shipment,’’ he said.
Minister of Trade, Commerce and Food Security, Nalin Fernando said factory owners and producers who sell goods at high prices would face action.
He told Parliament that when imports of tiles and bathroom fittings were stopped, local manufactures who held only 50% of the market, took full control of the market.
He said 1,500 items were at first prohibited and it was then reduced to 850 to 900.
“The local manufacturers misuse the opportunity and unethically increase their product prices. Tile which was sold for Rs 650 was sold for Rs 1,800,’’ while a Rs 1,300 worth bathroom fitting was sold Rs 150,000 he said.
“I asked the factory owners and producers about this, they were giving excuses for reducing prices, but when we explained to them to reduce prices via the intervention of Consumer Affairs Authority (CAA), some adhered and reduced prices but others did not,’’ he said. Mr Fernando said that as the country’s financial situation is improving, imports will be allowed if manufacturers do not reduce prices.
He said legal action will be taken against those not reducing prices within the next two weeks.
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