Sanitiser prices to rise as demand surges

Supply of raw material from China stops due to coronavirus threat

KARACHI: Following the outbreak of coronavirus in China and reporting of a few cases in Pakistan, the demand for hand sanitisers has increased dramatically, which is feared to spark price hike as the supply of raw material for the product stops from China.

“Pakistan’s demand for around 1,200 tons of sanitisers per year has now soared to 3,000 tons,” said Karachi Chamber of Commerce and Industry (KCCI)’s former president Aamir Abdullah Zaki while talking to The Express Tribune.

“Normally, the sector recorded a growth of 10-15% but this time it is more than 200% due to which stocks of liquid hand soaps are vanishing fast,” said Zaki, who is also the director at Silk Beauty Products, which makes sanitising fluid.

Pakistan imports raw material for the cleanser from China and also the product itself, however, imports from the neighbour have been suspended as a preventive measure against the spread of coronavirus, according to Zaki.

Furthermore, China’s demand has also surged, which is why it is focusing more on meeting its own requirement instead of focusing on exports. Hence, raw material was not available in the market and prices would rise shortly, he added.

However, consumers of the disinfectant reveal that prices have already gone up in various markets including the supermarkets of the country.

Previously, the upper-income class used the hand purifier, mostly businessmen, but nowadays, the trend has changed as the middle-income class is also opting for the product.

He added that the people of Pakistan, which had a population of 210 million, did not have the habit of washing hands in normal days. “Perhaps, that’s why the current demand is appearing huge.”

He pointed out that there were 15-20 brands in the category along with some unbranded products present in the market. However, the latter lacks the required quality that may even not have the sanitising element at all.

“Due to the shortage of stocks, the prices may increase around 200%, as that happened with surgical masks - their prices have skyrocketed from Rs200 to Rs1,000 per pack.”

Moreover, companies have started using intelligent ways of marketing their products by highlighting the threat posed by coronavirus.

The former KCCI president mentioned that India could be an alternative source of raw material for the liquid cleanser. “However, keeping in view the prevailing relations between Pakistan and India, we cannot import the raw material from there,” he added.

Pakistan and India have halted trade between them after tensions escalated in February 2019. Both can benefit from regional trade but political tensions are not allowing them to take benefit of each other.

Published in The Express Tribune, March 7^th, 2020.

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