China, Japan beats Indian salt
Country’s salt exports have plummeted following surplus production in China and globally higher demand for better quality salt from Japan.
By R R Goswami, TNN |
AHMEDABAD: Country’s salt exports have plummeted following surplus production in China and globally higher demand for better quality salt from Japan. Exports of salt fell from about 30 lakh tonnes in ‘04-05 to an abysmally low 8 lakh tonnes in ‘05-06, sources in the salt industries in Kutch and Saurashtra.
And the current year would be no better as Gujarat accounts for almost 80% of the country’s salt production. If the rise of Japan in the international market has squeezed both top line and bottom-line, late monsoon last year and the onset of an early monsoon this year is bound to impact salt production in the region in a big way.
“Our salt is already damaged,” says Hiralal Parekh, president of Kandla Salt Manufacturers Association. Caught in a jam, the industry says raising prices would harm even local demand. It would be prudent to take a hit on profits.
Poor infrastructure in terms of loading facility at the ports — restricted to only 15,000 to 20,000 tonnes per weather working day as compared to 70,000 in Australia — is also acting as a bottleneck. Freight for movement of salt from any Indian port to Japan or Sanghai is higher than that of Australia and therefore, buyer countries prefer importing salt from Australia.
“At the end of the day, the buyer has to cough up almost $16-20 a tonne, even as the global price ranges between $8-10 a tonne,” says BC Rawal, secretary, Kutch Saurashtra Salt Manufacturers’ Association.
Importers also complain that they do find consistency in the quality in Indian salt. In this industry, even the size of the salt unit matters. Major salt units having less than 3,000 acres are very difficult to undertake modernisation and mechanisation.
And the current year would be no better as Gujarat accounts for almost 80% of the country’s salt production. If the rise of Japan in the international market has squeezed both top line and bottom-line, late monsoon last year and the onset of an early monsoon this year is bound to impact salt production in the region in a big way.
“Our salt is already damaged,” says Hiralal Parekh, president of Kandla Salt Manufacturers Association. Caught in a jam, the industry says raising prices would harm even local demand. It would be prudent to take a hit on profits.
Poor infrastructure in terms of loading facility at the ports — restricted to only 15,000 to 20,000 tonnes per weather working day as compared to 70,000 in Australia — is also acting as a bottleneck. Freight for movement of salt from any Indian port to Japan or Sanghai is higher than that of Australia and therefore, buyer countries prefer importing salt from Australia.
“At the end of the day, the buyer has to cough up almost $16-20 a tonne, even as the global price ranges between $8-10 a tonne,” says BC Rawal, secretary, Kutch Saurashtra Salt Manufacturers’ Association.
Importers also complain that they do find consistency in the quality in Indian salt. In this industry, even the size of the salt unit matters. Major salt units having less than 3,000 acres are very difficult to undertake modernisation and mechanisation.
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