Detergent Prices may Rise on Duty Fears.

MUMBAI: The Rs 12,000-crore detergent industry, teeming with as many as 1,000 brands, is in a bit of a quandary . Even while prices of soda ash are on the rise, there is a move to impose an anti-dumping duty on the detergent raw material, leading to fears of an increase in detergent prices.

Low-price detergents use about 30% of soda ash by weight, while premium detergents consume about 30-35 %. Soda ash forms 30% of the total product formulation costs of lowprice detergents and 15% for premium detergents. An industry official said that prices of detergents could go up by 10-12 % if an anti-dumping duty is imposed, as companies operate on very thin margins.

According to Rajiv Mathur, general secretary, D etergent Manufacturers Association of India, "We will oppose the move to impose an anti-dumping duty on soda ash strongly. Even the safeguard duty, which was levied on imports of soda ash, is unjustified."

There is a wide range of companies which manufacture detergents. They vary from large multinationals like Hindustan Unilever and Procter & Gamble to smaller firms like Shri Mahila Griha Udyog which makes Sasa detergent powder.

Director General Safeguards had imposed a 16% safeguard duty on soda ash imports from China from April 20, 2010 to April 19, 2011 and 14% safeguard duty on imports from China from April 20, 2011 to April 19, 2012.

According to a notification from the ministry of finance, department of revenue, a 16% safeguard duty on imports of soda ash from China was imposed from June 28, 2010 to April 19, 2011.Now, a move to levy anti-dumping duty on soda ash has been initiated . This follows an application filed by the Alkali Manufacturers Association of India (AMAI) before the DG Safeguards in favour of an anti-dumping duty on soda ash exported from China, EU, Kenya, Pakistan, Iran, Ukraine and the US. The leading players in the soda ash industry are Tata Chemicals, GHCL, Nirma and DCW.

"The presence of such duties on ingredients of detergents is an anomaly . It will be cheaper to import mass market detergents into India than make them in the country. This presents a great threat to the large, medium and small-scale detergent manufacturers in the country," said an industry official.

Source : timesofindia.indiatimes.com