Prices of televisions, refrigerators, washing machines and microwave ovens are set to go up 2-5 per cent in the first week of October as the weakening rupee has pushed up the cost of imported components in such electronic items.

LG Electronics, Panasonic, Sony and Videocon, among others, have informed their trade partners that prices will be increased in phases to cushion the impact, according to five senior industry and trade executives.

"All brands are under tremendous pressure due to hardening dollar, which has hit profitability, and hence the industry will be forced to increase prices anytime soon," said Videocon's chief operating officer CM Singh. "The point is who will bell the cat first due to poor market sentiments."

The industry is in a Catch-22 situation: demand fell 10 per cent in the last quarter and the Onam festival has been unable to provide any big fillip to sales, while companies need to protect their margins.

Trade executives said LG and VideoconBSE 0.33 % have already finalised new prices and are waiting to announce them by early next month after dealers clear their existing inventory, which will lead to a deluge of similar announcements.

LG India is "closely monitoring the situation and contemplating looking at the present market situation", a company spokesperson said in response to an email.

Most white goods and television makers had benchmarked their prices with the rupee at 63-64 against the dollar. Since last month, the rupee has declined and currently hovers between 66 and 67.

Although several products are manufactured in India, key components and premium models are imported. Panels of LED televisions are imported and account for 80 per cent of the price. Microwave ovens are not made in India.

Panasonic India managing director Manish Sharma said the rupee depreciation might lead to an increase in product prices, thereby impacting consumer sentiment.

"However, an immediate price rise is not on the cards. We try and absorb as much cost as possible so that the consumers don't feel the pinch while offering zero per cent EMI schemes and offers," he said.

A Samsung India spokesperson said there are no plans to increase prices.