Not a very happy festive season as shortage of chips hampers supply of electronic goods

Lokmat News Network

Aurangabad, Sept 24:

From Navratri, the market for TV, fridges, electronic goods and consumer goods begins to flourish till December end. However, the shortage of electronic chips has affected the production of these items. The supply of these goods to the city has fallen by 30 to 35 per cent than demand. Traders fear that this is going to have an impact on this year's festive season.

The global shortage of semiconductor chips, continuing congestion in Chinese ports due to Covid quarantine policies and shortage of containers have all contributed to the poor supply situation of finished electronic products and their components used for local manufacturing. Several retailers said they are getting 20-40 per cent less stock across categories than what they have ordered for. In contrast, even a few weeks back the supply shortage was just 10-12 per cent. Even in e-commerce marketplaces, there is an acute shortage of tablets, large appliances and some models of laptops, industry executives said. Retailers said consumers are not getting their preferred choice of laptops and there is a 7-10 days waiting period for some hi-end models across brands. Even in the television market, the supply has fallen by 30 to 35 per cent. The 32-inch television has been hit the hardest pushing the prices up by 10 to 15 per cent. The supply of microwave ovens has also declined due to shortage of magnetrons, which are manufactured in China. As a result, prices of all commodities have gone up by 10 to 15 per cent.

Turnover in crores

The district has a monthly turnover of around Rs 25-30 crore for electronic items, TVs, fridges and washing machines. The turnover had stalled during the covid period. But, now the sellers have high expectations from the festive season. However, the lack of chips has affected the production as well as the supply of goods, making it difficult for the consumers to get the goods on time. Customers turn to other companies or e-commerce websites if they don't get the desired goods, resulting in loss to retailers, said trader Ravindra Parekh.