The detergent and soap industry in Gujarat is currently passing through its worst phase. The industry’s very existence is at stake due to a staggering 300% price hike in Acid Slurry (a key raw material) and a self-created artificial shortage. There are approximately 800 to 850 Small and Medium Enterprise (MSME) units in Gujarat manufacturing soap and detergent powder, which support the livelihoods of 25,000 to 30,000 worker families. Due to the current dire situation, nearly 80% to 90% of these units have shut down, leaving 15,000 to 20,000 workers unemployed and struggling for survival.
This unprecedented crisis was highlighted by the leadership of the Gujarat Small Scale Detergent Manufacturers Association, including Chairman Naresh Jain, Secretary Deepakbhai Sutariya, Joint Secretary Hitesh Pitroda, and Committee Member Neerajbhai, along with the Soap and Detergent Association Gujarat Chairman Rameshbhai Sudesha and Secretary Hemangbhai Patel.
The manufacturers of Acid Slurry (LABSA), the primary raw material used in detergent, are allegedly taking undue advantage of the global war situation to create an artificial shortage. The price of this raw material, which was ₹105 in October-November, has skyrocketed to Rs.300 for local units. Additionally, other chemicals and packaging materials have seen unbearable price increases; for instance, soap packaging that previously cost Rs. 36 has now jumped to Rs. 70.
Small-scale manufacturers primarily compete directly with multinational corporations (MNCs) in rural areas. Currently, MNCs are selling 200g of soap for Rs.10 (likely due to older, cheaper stock), whereas small manufacturers cannot afford to sell even 125g for Rs.10 due to rising production costs. Looking at this situation, there are concerns that this could be a large-scale conspiracy to intentionally shut down small units.
The detergent industry associations humby appeal to the government to intervene. They suggest that if a 20% to 30% quota of raw materials is reserved specifically for MSME units, the industry could be revived. They also expect Acid Slurry (LABSA) manufacturers to act with humanity and provide supplies at reasonable rates. If a solution is not reached soon, the upcoming Diwali festival will be filled with darkness for thousands of workers.
