Gujarat’s Detergent Industry in Deep Crisis as Raw Material Costs Surge
Gujarat’s Detergent Sector on the Brink: MSMEs Crumble Under Soaring Costs
Gujarat’s Detergent Sector Near Collapse as MSMEs Demand Urgent Intervention
- Bilkul Online
Ahmedabad | 11 April 2026
Gujarat’s detergent and soap industry is facing a severe existential crisis, as skyrocketing raw material prices and supply shortages have pushed a majority of small-scale manufacturers to shut operations.
According to industry estimates, nearly 80–90% of the 800–850 MSME units in the state have ceased production, leaving around 15,000–20,000 workers unemployed. The crisis has been triggered primarily by an unprecedented 300% rise in the cost of Acid Slurry (LABSA), a key raw material.
Naresh Jain, Chairman of the Gujarat Small Scale Detergent Manufacturers Association, expressed deep concern over the situation.
“This is the worst phase our industry has ever seen. We are not just witnessing losses, we are witnessing the collapse of livelihoods. If this continues, the MSME detergent sector in Gujarat may not survive.”
Deepakbhai Sutariya, Secretary of the Association, highlighted the issue of supply manipulation.
“The shortage of Acid Slurry is not entirely natural. There is a strong possibility of artificial scarcity being created, taking advantage of global war-like conditions to inflate prices.”
Echoing similar concerns, Hitesh Pitroda, Joint Secretary, pointed to the unbearable cost pressures.
“The price of Acid Slurry has jumped from ₹105 to ₹300. Along with that, packaging and chemical costs have doubled. Under these conditions, production has become economically impossible for small manufacturers.”
Neerajbhai, Committee Member, emphasized the human cost of the crisis, “Thousands of workers are now without jobs. These are daily wage earners who depend entirely on these units. Their survival is at stake.”
From the broader industry, Rameshbhai Sudesha, Chairman of the Soap and Detergent Association Gujarat, raised concerns about market imbalance.
“Multinational companies are still able to sell 200g soap at ₹10, while small units cannot even produce 125g at that price. This is no longer fair competition.”
Hemangbhai Patel, Secretary of the Association, warned of deeper structural risks.
“If MSMEs continue to shut down, the entire market will be dominated by large corporations. This could permanently damage the competitive landscape of the industry.”
Industry leaders have jointly appealed to the government for immediate intervention. They have proposed reserving 20–30% of raw material supplies specifically for MSMEs and ensuring fair pricing.
Naresh Jain added a final, stark warning:“We are not asking for favors, only survival. If timely action is not taken, this Diwali will bring darkness, not light, to thousands of workers’ homes.”
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