No price increase for laundry detergents seen this year

There will be no increase in the prices of laundry detergents this year after the Department of Trade and Industry (DTI) decided to lift the safeguards on one of the product’s major ingredients, the Soap and Detergent Association of the Philippines (SDAP) said.

"The removal of the tariff will completely stop price increases for the year," SDAP vice president Alfonso C. Supetran said in an interview.

The last time soap manufacturers increased their prices was September last year when they raised the cost of detergent by five percent.

Supetran said the soap manufacturers usually adjust the price upward twice a year, but with the recent decision, he said the prices will remain steady for until end of December.

According to him, the tariff makes tripolyphosphates-technical grade (STPP-TG), a key ingredient in laundry detergent, more expensive. He said the tariff was set in order to protect just one company, Chemical Industries of the Philippines Inc. (Chemphil), the sole manufacturer of STTP-TG in the country.

Chemphil has earlier said it will close by the end of May if the DTI will not reconsider its decision to lift the additional duty on STTP-TG.

Supetran, however, is not bothered by the statement. "They should have closed a long time ago," he stressed. According to him, the tariff has forced the soap manufacturers to buy the raw material 40 to 50 percent more than the actual price.

Chemphil, together with the Fair Trade Alliance (FTA), has already written DTI Secretary Peter B. Favila to ask him to reconsider the removal of the tariff.

FTA lead convenor Wigberto Tañada admitted it will not be easy to argue their case given that there has been no precedent that the DTI Secretary reversed its own decision regarding a tariff case.

Earlier, Favila has issued an order dismissing the application for a definitive general safeguard measures against imported STPP-TG as the earlier imposed safeguard measure expired last month.

The DTI said it has decided to remove the tariff because the imposition of the definitive safeguard measure does not serve the condition of public interest.

According to the DTI, this means continuous tariff collection would have a negative affect on the downstream industries.

STPP-TG is a powdered or granular substance which is an excellent builder for synthetic detergents, as it provides anti-redeposition properties and sequestering ability in hard water. This is also used for the purification of China clay, as anti-pitch agent in papermaking and textile processing, and as dispersant in cement.

Therefore, charging additional duty in the importation of STPP-TG will eventually translate to loss of employment and investment opportunities in the affected industries such as cement, textile, detergent and paper.

The DTI likewise noted that end consumers of products using STPP-TG as raw material will be susceptible to price fluctuation as the additional duty remain in force.