Chemical substance plants suffer for delays on soda ash import
Production in a number of local chemical, textile and glassware factories is facing setbacks for delays in the shipment of soda ash by Indian exporters over the past four months.
Soda ash, generally known as sodium carbonate, is an extremely soluble compound used for numerous chemical substance reactions. It's mostly used as an ingredient in the manufacture of dyes and colouring agents, synthetic detergents, fertilisers, glass and gum.
Bangladesh will not produce this chemical substance and its gross annual demand for 3 lakh tonnes is met through imports. Although one source is China, over 70 per cent originates from India mainly because of a shorter lead time and lower prices, said importers.
The Daily Star received complaints over the matter from numerous factory owners.
Indian exporters are delaying shipping over 50,000 tonnes of soda ash that letters of credit (LCs) were signed 4 or 5 months back at a rate of $210 to $220 per tonne, alleged localized consumers, millers, importers and traders.
When explanations are sought above the delays, the exporters are citing excuses of cost hikes in international market segments, including of freight charge
However, those being purchased at rates which range from $320 to $340 per tonne will be being promptly shipped.
The LCs had freight cost set at $30 per tonne however now the Indian exporters are demanding $60 per tonne, citing high demand for a scarcity of ships, said importer Partho Roy.
Small importers are mostly facing troubles as the Indian exporters are mainly focusing on timely delivery of big consignments, he said.
Production in the neighborhood mills and factories are actually appearing been affected, said a great importer and a supervisor of a chemical provider asking not to be named.
"We face risky of losing organization if there will be any unforeseen delays or perhaps value hikes of washing items," he said.
"Lots of the factories have previously halved their production due to a lower way to obtain the washing things. Our buyers are adding pressure on us for timely delivery of things," he said.
"Production in my factory declined drastically almost to half because of a shortage of way to obtain soda ash," said another anonymity-seeking senior supervisor of a glass factory which consumes 20,000 tonnes of soda ash a year.
"I used to produce 300 tonnes of glassware in a day however now I produce practically 150 tonnes a moment because I do not need an adequate supply of soda ash," he explained.
It is also extremely hard to get the raw materials on a short notice because it might take over 90 days if LCs are actually opened to import the same goods from China even in higher prices, he said.
Abdullah Al Mamun, vice-president of Bangladesh Textile Mills Association (BTMA) said prices of almost all chemical and recycleables had increased in the fallouts of the Covid-19 pandemic and subsequent rise in freight charges.
Many importers, dealers and mill users shifted to India from China to enjoy lower rates and a shorter lead time, resulting in an overbooking of Indian suppliers, he said.
As a result Indian suppliers are facing difficulties in ensuring the source, Mamun also said.
He said because it was a simple raw material for washing items, Indian suppliers should focus on timely deliveries for continuation of steady production in the neighborhood mills and factories.
Abdul Matlub Ahmad, president of the India-Bangladesh Chamber of Commerce and Market, said to have obtained no complaints regarding the matter.
The chamber will look in to the matter to find a solution because soda ash is a very significant item for Bangladesh, he said.
He, even so, added that prices of all imports from India such as for example steel, iron and chemicals have increased as a result of a disruption in production due to a severe crisis found in the neighbouring region stemming from the Covid-19 pandemic.
