The rise in prices of caustic soda has been to the tune of Rs 2,000 per tonne this month. Shortage of salt has forced the upward revision for the second time in the last two months. Caustic soda currently hovers around Rs 14.50 per kilogram (inclusive of excise) as against Rs 9.00 that was prevailing in May.

Manufacturers now fear that the government will pressurise the allocation of this scarce commodity label salt to domestic households and curtail the supply for industrial use. This decision may lead to a severe shortage of salt for industrial use, manufacturers fear.

In a meeting held in Mumbai last week, manufacturers decided to hike the prices as almost all plants manufacturing caustic soda have been hit due to short supplies of salt.

The shortage will continue for next six months as new production of salt will commence onlyafter January. The leading manufacturers of caustic soda and allied products are DCW, Ashok Organic, ChemFab Alkalies, Tata Chemicals and Punjab Alkalies.Salt is the main raw material for chemical products like caustic soda, soda ash, chlorine, hydrochloric acid and other such products. About two tonnes of salt is needed to manufacture one tonne of caustic soda. Caustic soda is heavily consumed by paper, textiles, dyes and aluminium industries.

Chlorine and hydrochloric acid, by-products of caustic soda have also been affected due to shortage of salt availability.