E-Kantipur

KATHMANDU, DEC 06 -

Prices of IT products in the domestic market have skyrocketed in recent days.

According to traders, the strengthening of dollar against the Nepali rupee and recent Thailand flooding have fuelled the price hike.

Prices of items such as computers, peripherals, accessories, networking devices, printers and cables, among others, have gone up by 15 to 25 percent, while hard disk prices have surged by more than three folds compared to a few months ago.

And the effect, traders say, is such that the market has slipped by more than 40 percent. “Although the prices have not fluctuated much in the international

market, the surge here is mainly due to the strong dollar,” said Sagar

Dev Lakhe, president of Information Communication and Technology association of Nepal, the umbrella organisation of IT product traders.

Lakhe, who also heads Sagar Infosys, authorised importer of a number of IT products, said the prices have been escalating for the last one-and-a-half months and the situation may worsen if the dollar continues its rise. Exchange rate for the Nepali currency, in the last three months, has increased to Rs 84 against the dollar from 72.

As far as the rise in hard disk prices is concerned, it is mainly due to the flooding in Thailand—one of the world’s biggest hard disk manufacturers. And, around 90 percent of the product arriving here comes from Thailand, according to traders.

“The prices may rise further as most of the hard disk manufacturers in Thailand have not resumed they operations,” said DB Shrestha, administration and operation manager at SHTC International, authorised distributor of Fujitsu for Nepal, adding that a hard disk costing Rs 3,300 earlier now costs Rs 9,500.

The surge in hard disk prices has also made desktop computers expensive. Desktops, which were available for Rs 16,000-Rs 17,000 earlier, now cost around Rs 25,000.

The significant increment in IT product prices has not only affected consumers, but also compelled traders to cut down their imports, according to Lakhe.

“One cannot predict when the dollar weakens or strengthens. Therefore, importers are in no mood to take risk,” said Lakhe. This has also pushed IT product sales down. “The market has plunged by 40 percent,” said Murari Gautam, managing director of Marigold IT Solutions.

“Products currently being sold in the market were imported when the dollar was not so strong, so they are priced accordingly.

But fresh batch of products will be dearer by at least 15 to 20 percent,” he said.

The situation is such that dealers fear to open Letters of Credit. “We are confused what to do and what not to. We will be in a wait and see mode for a certain time and act accordingly,” Gautam said.

Posted on: 2011-12-06 09:34

Post Your Comment

Please note that all the fields marked * are mandatory.
* Full Name
* Address
* Email Address
* Comment
* Captcha	Get another CAPTCHA code
Note:	Comments containing abusive words or slander shall not be published.