The Prices of Sodium Bicarbonate is consistently rising in India on the back of the increasing raw material prices and high energy cost

The year 2022 is crucial for various end-user industries, including agriculture, pharmaceutical, food and beverage, and others, to get government support, as these industries play a vital part in fuelling India's overall GDP growth. Soaring shipping costs and high freight charges in the past year riddled with supply-chain disruptions have strained various commodities importers in India, which are likely to stretch into 2023. The container shipping industry is undergoing various supply-chain disruptions due to surging sea freight costs causing devastation on trade Congestion at major regional transshipment ports.

As per ChemAnalyst, the prices of Sodium Bicarbonate are consistently increasing due to the surging raw material prices and high sea freight charges. The short supply of electric power and coal is resulting in increased energy costs, which is further propelling the price of Sodium Bicarbonate in India. Sodium Bicarbonate prices shot up from USD 432.2 per tonne to USD 464.5 per tonne from 7th Jan to 14th Jan, showcasing an increment of 7.2%, and are anticipated to increase further in the upcoming weeks. In China, according to an exporter from Yiwu, Zhejiang province, many Indian buyers have dropped orders due to the high shipping costs. Several Chinese manufacturers are bracing for another round of potentially weakening supply chain disruptions as the country imposes lockdowns due to rising omicron cases, which will further exacerbate the prices of Sodium Bicarbonate in India as it is mainly imported from China. Additional disruptions to the global supply chain would lead to distraught moments for various companies, which are struggling with soaring raw materials and shipping prices along with extended delivery times and worker shortages. The demand for Sodium Bicarbonate is rapidly increasing after the Covid Era from the downstream food and beverage industry in the Indian domestic market.

What lies ahead?

As per ChemAnalyst, the current market scenario of Sodium Bicarbonate is anticipated to prevail in the spot market until the last week of January. Sodium Bicarbonate prices are expected to increase further in the upcoming weeks in the Indian domestic market on the back of the rising demand and increasing raw material prices. Major players with a high self-sufficiency rate and a high degree of performance are expected to boost their production in order to cope up with the surged demand.