Prices of soda silicate up by 400pc

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FE Report
Prices of soda silicate, a chemical, increased by around 400 per cent over the past few days in the local markets.
Soda silicate is a raw material for manufacturing different kind of boards that are used for making cartons, boxes and other packaging accessories.
Earlier, the chemical used to be sold at Tk 7.0 each kilogram but now it is being sold between Tk 26 and Tk 27 per kilogram.
The corrugated carton and packaging sector which earns around US$ 60 million a year supplies packing materials to the export oriented industries like apparels, frozen food, pharmaceuticals, consumer goods and ceramic industries.
Sources said a supply side constraint is the main reason behind such sky rocketing of the ingredient.
President of Bangladesh Corrugated Carton and Accessories Manufacturers and Exporters Association (BCCAMEA) Shafiullah Chowdhury told the FE that the factories producing the packing materials will face difficulties if the price hike of soda silicate is not arrested.
There are around 450 carton factories mainly located in Dhaka, Chittagong, Narayanganj, Gazipur and Khulna.
Chowdhury said he believed that some businessmen had formed a cartel to manipulate the prices of the chemical.
He also claimed that the prices of the ingredient in the international markets were stable.
But importers said short supply of the item is the main reason for such price rise of the item.
"We procure soda mainly from India and China. The supply position will be restored shortly as one consignment is expected to arrive in the port soon," said one importer in Chittagong over phone.