PMFAI requests intervention of Ministry of Chemical and Fertilizer on price increase of Acetic Acid

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30 September 2021, Mumbai: The Industry body, Pesticide Manufacturers & Formulators Association of India (PMFAI) has raised the issue with Mr. Yogendra Tripathy, Secretary, Ministry of Chemicals and Fertilizers on the recent price rise of Acetic Acid.

Mr. Pradip Dave, President, PMFAI, in a written communication to Mr. Tripathy, mentioned the recent notifications on price increased from sole supplier Gujarat Narmada Valley Fertilizers & Chemical Ltd. (GNFC). The letter mentions incremental pricing from 17th September to 23rd September 2021. The net increase in rate of 17th September was an addition of Rs. 6000/MT which made the base rate of Rs. 92,000/MT on tanker load and Rs. 1,01,200/MT for supply in carboys load. The price circular for 23rd of September mentioned new base price of Rs. 1,14,000/MT for tanker load and Rs. 1,23,000/MT for carboys load. The frequent increase in the price has been a matter of concern for all the industries which uses acetic acid.

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Gujarat Narmada Valley Fertilizers & Chemical Ltd. (GNFC) which is jointly promoted by the Gujarat and the Gujarat State Fertilizers and Chemicals is the only supplier of Acetic Acid in India as of now. A derivative of Acetic acid, Mono Chloro Acetic Acid (MCAA) is used in manufacturing of Agrochemicals, Chemicals, Pharma, Intermediates and allied industries.

“The increase in the price will also lead to increase in the price of finished products which will impact the export of agrochemicals, pharma and other intermediate products and will become uncompetitive in the global market”, said Mr. Dave. He further mentioned that, “The farmers are already burdened with erratic rainfall, pest attach and crop failure at places. Further increase in agrochemical prices will increase their cost of cultivation.”

PMFAI requested the intervention of the Ministry of Chemical & Fertilizers as situation is expected to get worse by the end of October and November as most of the shipment from Chinese suppliers are expected to be cancelled.

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