Force majeure relief sought as prices spike, IT procurement under strain

India’s IT hardware vendors are urging the government to treat the current surge in component prices and tightening supplies as an extraordinary disruption under public procurement norms, warning that fixed‑price tenders are becoming unviable. Global RAM and storage prices have reportedly jumped up to fourfold in recent months as chipmakers prioritise AI and data‑centre demand, shrinking allocations for PCs and standard enterprise hardware and inflating acquisition costs for public buyers. With PC demand in India now forecast to contract even as compute‑intensive use cases rise, suppliers fear that honouring earlier low‑bid contracts could lead to steep losses or defaults unless tenders build in clearer force majeure or hardship relief for extreme, unforeseen cost spikes.

Industry representatives are also citing the Covid‑19 period, when authorities accepted widespread supply‑chain disruption as force majeure, as a precedent for granting similar flexibility in today’s stressed IT hardware market.

CT Bureau