Furniture prices likely to soar by 12 percent

The prices of locally-made as well as imported furniture are likely to go up by 10 to 12 percent owing to the taxes imposed in the federal budget 2013-14. Furniture dealers said on Monday that the manufacturers of foams and mattresses had already raised the prices of their products by up to 12 percent. 

They further said that the prices of bedroom furniture, upholstered chairs and sofas, were likely to witness an increase of more than 10 percent in the coming months, because of the recent hike in taxes as well as rupee depreciation, increase in wood prices and other raw materials and increase in oil prices and power tariff. 

“While most of the businesses are experiencing high production costs, we tried to contain the prices as long as we can, especially during the wedding season,” a furniture dealer said. The furniture manufactures said they were making investments to make their plants more efficient so that the impact of increase was minimised. While others said they had already raised prices to help offset the increase. 

“Overall economic conditions are not good, and that is why we are cautious about raising the prices,” said another dealer. The furniture industry in the country is not organised, where profit margins are narrow, prices stay remarkably steady from year to year, partly because of competition from less expensive imported products. Local manufacturers worry that even a slight increase in their products could seriously disrupt the business. 

A dealer at a Gulshan Furniture Market said that two years back a medium quality bedroom set (three-door wardrobe, dressing table and double-bed) used to cost Rs 25,000 to Rs 40,000 either of Sheesham Partex wood or deco, which was now priced at Rs 65,000 to Rs 100,000. However, some furniture dealers were of the view that the increase in prices would have little impact on their businesses as the people would never give up their tradition of giving furniture in dowry. 

Copyright Business Recorder, 2013

Muhammad Ramzan Rafique
Muhammad Ramzan Rafique

I am from a small town Chichawatni, Sahiwal, Punjab , Pakistan, studied from University of Agriculture Faisalabad, on my mission to explore world I am in Denmark these days..

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