Global supply chain issues have badly affected Gujarat’s soap and detergent industry. Due to a severe shortage of raw materials, nearly 80% of small manufacturing units have shut down, creating a major crisis
These closures have hit hundreds of MSME units and left thousands of workers without jobs. Gujarat has around 850 such units, supporting 25,000 to 30,000 families. With most units now closed, about 15,000 to 20,000 workers have lost employment.
Industry leaders say the main reason is the sharp increase in the price of acid slurry (LABSA), an important raw material. Its price has risen from about ₹135 per kg in January to nearly ₹300. Meanwhile, big companies get it cheaper through long-term contracts. Small manufacturers also claim there is an artificial shortage.Other costs have also increased.
Packaging prices have almost doubled, making it difficult for small units to continue production or compete with big brands, especially in rural markets.
If the situation continues, soap prices may rise for consumers. Industry groups have asked the government to help by reserving 20–30% of raw materials for small units.
They warn that without quick action, the crisis could worsen further, especially with the festive season coming.