Dec. 12 (Bloomberg) — The price of photovoltaic panels is rising in India as a global supply glut eases and a weaker rupee increases the cost of imports, according to Rays Power Experts Pvt., a solar plant contractor.

Crystalline silicon modules are selling in India at 35 rupees (57 cents) to 45 rupees a watt, up about 5 percent this year, Rahul Gupta, Rays Power director, said by phone today.

“The dead inventory has cleared out, and prices are rising,” Gupta said. “Suppliers are working on making profit margins again.” Rays Power imports Canadian Solar Inc. modules for most of its projects, he said.

The solar panel industry is emerging from a three-year slump triggered by global oversupply that led to a 57 percent plunge in prices, according to data compiled by Bloomberg. That’s turning around thanks to increasing demand in China and Japan, set to become the top two markets this year, and industry consolidation that has reduced production capacity.

Solar photovoltaic plants import about 60 percent of their components, and the weakening currency has raised costs by 12 percent this year, Gaurav Sood, managing director of developer Solairedirect SA’s local unit, said in September. The rupee has declined 12 percent this year.

New Delhi-based Rays Power has built 35 projects for developers comprising 60 megawatts, Gupta said. It plans to more than double that, completing a total of 150 megawatts by the end of the financial year ending in March.

To contact the reporter on this story: Natalie Obiko Pearson in Mumbai at npearson7@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net