Importers and wholesalers of Chinese goods informed myrepublica.com that the prices of such goods will go up at least 15 percent this season -- thanks to price hikes by the Chinese suppliers themselves and frequent obstruction of the Araniko highway, the main overland import route. [break]
"Both internal and external factors have contributed to jack up the prices," said traders. Among the internal reasons, frequent obstruction of Araniko Highway has caused substantial delay in delivery of shoes and garments -- items in high demand during Dashain, adding cost to importers and wholesalers.
Apart from that, garment prices in China itself have increased 27 to 40 percent, said readymade garment wholesaler Arjun Karki. "The price hike in China has forced us to increase prices also," Karki told myrepublica.com. And on top of that he has not been able to bring in all the goods he ordered, due to road obstructions, he added.
Numerous wholesalers in Chinese goods said they have been compelled to turn back retailers as the goods did not arrive on time.
Chinese goods imported from Shanghai, Guangzhou, Chengdu and some other places are popular for their prices among low-income as well as middle-class consumers. But with the price hikes, this might no longer be the case.
Traders said there were other reasons beside limited supply behind the increase in prices this Dashain. For instance, the recent revaluation of the Chinese currency, which made it stronger vis-a-vis the US dollar, has also contributed to the price hike.
"Apart from that, China recently increased the wages for labor," said Bhim Lal Poudel, member of the Trans-Himalaya Trade Association (THTA), a body of traders who deal in Chinese goods.
Poudel, who deals in shoes, said traders have already jacked up the prices of shoes imported from China by 10 to 15 percent. Interestingly, in the case of shoes, obstruction of the highway and limited volume of imports played a larger part in the price hike than other factors.
"The supply of shoes is not good enough this season. Prices are bound to go up," Poudel noted.
According to General Secretary of THTA Keshav Rayamajhi, commodities worth Rs 2 billion are being brought into the country from China every day these days. There are more than 50 traders actively engaged in the China trade.
Despite the price hikes, Durgalal Shrestha, president of THTA, informed myrepublica.com that traders are expecting sales to rise 60 percent this season.
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