Iran Consumers and Producers Protection Organization has allowed producers of home appliances to once again raise their prices.
Prices of audiovisual products have been allowed to go up by 20% and other home appliances by 25% compared with prices registered in the Iranian month ending Feb. 19.
The organization set June 16 as the deadline for producers to log the new prices on 124.ir, otherwise they will be subject to regulations penalizing those who supply appliances outside the network.
On Wednesday, CPPO said more than 30 producers had registered more than 1,000 items on the database. The new official price increase has followed the previous hike in less than six months.
Producers of home appliances blame the 50% rise in prices of steel sheets and the metal’s shortage, ban on imports and the outbreak of coronavirus as well as the depreciation of the national currency’s value in the first quarter of the current Iranian year (started March 20) for the skyrocketing prices.
Unofficial reports say prices are 30-60% higher than the beginning of the current Iranian year, as producers have reduced the supply of products. Salespeople say companies are making considerable delay in deliveries.
Mehdi Sadeqi-Niyaraki, deputy industries minister, says home appliance output has been on the rise over the past two months.
“Washing machine output rose by 152% to reach 121,000 machines in the current year compared with 48,000 last year. The production of washing machine saw a 33% rise in the year ending March 2020 compared with the year before. Television manufacturing climbed by 49% in the past couple of months, from 73,000 to 110,000 TV sets,” he said.
Producers of home appliances blame the 50% rise in prices of steel sheets, ban on imports and the outbreak of coronavirus as well as the depreciation of the national currency’s value in the first quarter of the current Iranian year (started March 20) for the skyrocketing prices
“Last year, the production of small appliances, refrigerators and television sets posted a year-on-year growth of 12%, 12% and 3%, respectively. The industry experienced a 10% growth last year despite all restriction imposed by sanctions,” he was quoted as saying by IRIB News.
Kayvan Gordan, another senior official with the ministry, said nearly nine million devices were produced in the country last year, indicating a 10% year-on-year growth, which is barely 50% of the industry’s potential.
“There is no shortage of home appliances, though an import ban is in place since past two years. Some smuggled goods in the market have seen price increases recently,” he added.
However, price hikes of home appliances and a decline in supply have prompted customers to approach unofficial markets near the country’s borders to the west and south, the Persian-language daily Etemad reported.
As the gap between supply and demand is filled by contraband home appliances, smugglers have overtaken licensed importers.
Baneh in the western province of Kurdestan is a well-known gateway for smuggled products since past 15 years.
“Buying from Baneh” is one of the main Google trends now. There are more than 50 websites dedicated to selling home appliances from Baneh. These websites are not filtered; various methods of purchase, long-term warranty and after-sales services have been posted on these websites to ensure customers feel they are in the right place.
By and large, the prices of products on these websites indicate a wide gap with those in official markets. They are all available and sometimes offered on discount.
Bandar Genaveh in the southern province of Bushehr is another gateway to smuggled home appliances. Close to 30 channels on Telegram messaging app encourage customers to buy cheaper, high-quality home appliances.
For example, a washing machine of an international brand is valued 70-100 million rials cheaper in Genaveh compared with Tehran’s online or bricks-and-mortar shops.
You can also find a variety of simiular offers in Qeshm and Dargahan in Hormozgan Province.
