Tamil Nadu: Salt manufacturers take a hit with downturn in market price

MADURAI: Salt manufacturers in Thoothukudi are witnessing a downturn, with the unattractive price of salt at the market despite production picking up lately.

The market price has declined drastically to Rs 1,500 per tonne, while the top quality fetches Rs 2,200 a tonne a present. Because of erratic rains, the production was hit during April and May this year, with stocks getting almost drained. Subsequently, the price steeped. A tonne of edible salt was priced ranging from Rs 5,000 to the maximum of Rs 6,000, noted D Chandra Menon, president of the Tuticorin Small Scale Salt Manufacturers Association, on Monday.

After stocks ran out, many traders, who relied heavily on the Thoothukudi salt industry, switched to Gujarat, the largest contributor in India, and shipped large quantities of salt from there. A tonne of Gujarat salt was priced at Rs 3,200, a couple of months ago.

Pointing out that June, July, August, and until mid-September are the peak season for salt production in Thoothukudi, he said that at present the production has been steady and is expected to achieve 70 per cent like last year.

Meanwhile, S Petchimuthu, a salt manufacturer, said that the healthy trend of production in full swing has enabled the manufacturers to replenish stocks. The industry would most probably witness a surge in market price after the onset of the northeast monsoon in October, as the rains would wreak havoc on production, he said, adding that, as always, the price will spike when supply falls short.