Price of toiletries may come down in 4-5 months if raw material market, dollar stabilise: Companies

If the price of raw materials and the price of the US dollar become stable, the prices of various toiletry products such as soap, detergent, toothpaste and so, will take another 4-5 months to come down, said companies producing the items. 

Producers of soap, detergent, paste, and liquid cleaning products in the country said it during a discussion meeting organised by the Directorate of National Consumers' Right Protection on Wednesday (7 September). 

"The price of raw materials in the world market is slightly decreasing. At the same time, if the dollar price is stable, the prices of these products may decrease after 4-5 months," said Square Toiletries Ltd Director (Operation)  Malik Mohammed Sayeed said at the event. 

"We regularly see oil prices rising along with rising prices in the world market. But if we look at the price of raw materials in the global market of these products, we can see that they rise and fall. However, the prices of these products are only increasing," said DNCRP Director-General AFM Safikuzzaman.

"However, sometimes a decision is taken to reduce the price, but the companies could not mention it specifically," he added. 

Unilever Bangladesh CFO Zahid Malita said that the company decreased the prices of its products but could not say when the company last cut its prices. 

"It cannot always be remembered, but if the price of raw materials decreases, we adjust it," he added. 

Square Toiletries Ltd Director (Operation)  Malik Mohammed Sayeed added that the price of these products was reduced once 7 years ago in 2015 due to the decrease in the price of raw materials.

Due to the economic impacts of the coronavirus pandemic, Russia Ukraine war, volatility in the dollar market, the companies increased the prices of various products including soap, toothpaste, and detergent among other things.

At the beginning of this month, the price of 100 grams of fragrant soap was increased from Tk40 to Tk55 depending on the brand, while the price of 500 grams of detergent was increased from Tk60 to Tk90.

The price of toothpaste has increased by Tk10-20 per 100 gram tube. The price of tissue papers has increased by Tk5-10 depending on the size and quality.

Companies say the main reason for this is the increase in the cost of raw materials.

An account of this was also presented by Unilever. Unilever Bangladesh CFO Zahid Malita said that the price of soap and detergent has increased by 50-60% in the last two years. 80% of the raw materials of these products have to be imported from abroad.

The price of half a kg of Rin powder was 60 taka in 2020. At that time the price of its main raw material sulfuric acid was 83 taka per kg. In 2022 half a kg of Rin powder is being sold at Tk90, as now the cost of buying this raw material is Tk190 per kg. That is, the price of raw materials has increased to 170-180 taka. Similarly, the price of soap raw material vegetable oil, toothpaste raw material soda ash has increased in the world market, he added.

But at present the prices of some products are decreasing, he said.

Companies say that their profits have to be reduced significantly while adjusting prices. Because consumers have reduced the consumption of these products. At the same time, when world prices began to fall, inflation increased the cost of the dollar. They said that even though the price of raw materials has decreased in the world market, customs want to levy on the previously increased price. This will make it difficult to reduce the price of products.

DNCRP said it will work with the concerned agencies to resolve the issue.

The increase in raw materials was also highlighted as the reason for the increase in the prices of products by ACI and Kallol Group of Companies. 

"When some products of a brand become popular among people, companies increase their prices seeing an opportunity. It increases people's suffering. That shouldn't happen," Bhoktakantha Editor Kazi Hannan said in the event,

At the end of the programme, DNCRP DG AHM Safikuzzaman said, "We will visit the companies with the officials of several departments and analyse their problems. Actually, how much the price was supposed to increase, how much they increased. If we find anything unusual, we will recommend taking action there."