Retail Inflation rates may have started showing a slight softening, but the common people are not seeing any signs of getting relief from the brunt of inflation. On the one hand, the prices of milk and products made of milk used daily have increased continuously, on the other hand, people may have to spend more for everything from bathing to washing clothes. It is possible that the prices of soap, shampoo to detergent may increase in the coming days.
Proposal to increase the duty on this material
According to a news of English newspaper ET, There is a proposal to increase the tax on a major raw material used in products like soap, shampoo and detergent. About two months ago, the Directorate General of Trade Remedies (DGTR), under the Ministry of Commerce, suggested that taxes on saturated fatty alcohols coming from Indonesia, Malaysia and Thailand should be increased. It has proposed to increase the rates of anti-dumping duty on this material as well as impose additional countervailing duty. If the proposals are accepted, the import of saturated fatty alcohol will become costlier in the coming days, as there will be higher duty on buying saturated fatty alcohol from Indonesia, Malaysia and Thailand. Indonesia, Malaysia and Thailand are the major source countries for saturated fatty alcohols. On the other hand, saturated fatty alcohol is used extensively in making soap, shampoo and detergent. When this raw material will be expensive, it is natural that the companies will put the burden of increased cost on the customers as well.
So many people are getting work
Let us tell you that Indian surfactant industry ie The estimated size of the soap, shampoo and detergent industry is around $2.5 billion. More than 9 thousand people have got direct employment in this industry. Any negative impact on the industry could also affect the livelihood of thousands of these people. And the Indian Surfactant Group, an organization of the detergent industry, has expressed concern over the proposals of the Directorate General of Trade Remedies. Regarding this, the ISG has written a letter to the Finance Ministry, requesting not to implement the proposals to increase the duty on saturated fatty alcohol. He is concerned that doing so may affect the ability of companies in the industry to make profits and may have to wind up their operations.
Companies will not be able to bear the burden
Indian The Surfactant Group has claimed that till now the soap, shampoo and detergent manufacturing companies are bearing the burden of the increased cost themselves. However, if duties on key raw materials are increased on such occasions, they will not be able to absorb the burden, and will eventually result in higher prices of the products.
