Hike in rates of chemicals, dyes makes city industry see red

Ludhiana: Rates of chemicals and dyes imported from China have shot up by 100% to 350%. Increase in prices is due to drop in production and hike in ocean freight rates.
According to businessmen, the rates have been increasing for the past six months, but the biggest jump was registered in the past one month. The traders and importers are worried as not only their investments have shot up manifold, but there is also no surety if the rates will not increase any further.
Chanmeet Singh, an importer and trader of chemicals, said, “The rates of chemicals have increased exponentially in the past six months with maximum hike seen in the past thirty days. This is happening because production by Chinese companies has dropped due to the internal factors in their country. Besides, there is a huge rise in ocean freight rates that has increased prices of chemicals in India by almost double. Some rates have shot up by more than 350%. Today’s rate of acetic acid, which was available for Rs 45-50 per kg six months ago, is Rs 115-120 per kg. The rate of caustic soda has reached Rs 3,200 per 50kg bag from Rs 1,500 six months back.”
Chanmeet added, “Similarly, the rate of sodium hydrosulphite right now is Rs 160 per kg and six months ago it was in the range of Rs 82 to 85 per kg. Glycerine’s rate has reached Rs 230 per kg from Rs 40-50 per kg six months ago. Besides these, other two commonly used chemicals phosphoric acid’s and silicon’s rates have jumped to Rs 240 per kg and Rs 300 per kg from Rs 70-80 per kg and Rs 150 per kg, respectively, six months back.”
According to Neeraj Kumar, another chemical and paints trader, “Massive volatility in the rates of chemicals has dealt us a severe blow, as our investment in the business has more than doubled. Six months back, to buy 10,000kg of glycerine, one had to invest Rs 4,00,000, but now one has to shell out Rs 23,00,000. What is even more dangerous for traders and consumer industry is that there is no guarantee when the rates will stabilize, forget any reduction.”
Rohit Gupta, president of Importer Exporter Club, Punjab, said, “Importers of chemicals are in big trouble and so are dyeing, garment, casting and electroplating industries, who are main consumers of these products. Besides the increase in rates by Chinese companies and short supplies, the biggest factor responsible for this situation is the unbelievable hike in ocean freight rates. The Centre must take notice of this situation and take corrective measures to bring the freight rates in control to give us some relief.”