Thoothukudi salt producers upbeat over market prospects

Madurai

“Normally, production would be wound down in the middle of October or by the end of the month, following the onset of the Northeast monsoon, but the early intervention of rain on October 1 has made producers halt production. There’s a production shortfall of about 35 to 40 per cent this year,” according to G Gragadurai, president, Thoothukudi Small Scale Salt Manufacturers Association.About 95 per cent of production would be achieved annually on average if there was no rain intervention. However, despite the decline in production, Diwali festival bonus was provided to salt pan workers. Usually, male workers are paid Rs 4,000 as bonus, but this year they were given Rs 4,300 and women workers were given Rs 3,975 against the normal bonus of Rs 3,675.Since representatives of eight labour unions demanded a hike in bonus citing the prevailing market trend, the salt manufacturers’ associations made a collective decision before providing them the required bonus.In 2017, manufactured salt was sold at far below the market price. A tonne of finished product fetched a market price of Rs 300 to Rs 400, which was below the expenditure incurred on production last year, but it has touched Rs 1,000 and over now, he told DT Next, on Sunday.ARAS Dhanabalan, secretary of the association, said salt production was not only affected early this year, but it got off to a delayed start due to unseasonal rain in March. However, he was confident that existing stocks would be traded in the market ahead of the new season in February 2019.MSP Thenraja, president, Tuticorin Salt Merchants Association, said stocks dwindled due to production shortfall, but it was still positive for the market as a tonne has touched Rs 1,200 to Rs 1,500 over the last three days. Apart from Tamil Nadu, there’s a constant demand for Thoothukudi salt in Kerala, Karnataka, Andhra Pradesh and some parts of Odisha, he added.Now, export trade of this commodity also seems to be healthy as container shipments to overseas destinations has witnessed an increase by about 30,000 tonnes, said TPS Pon Kumar, an export trader. With the logistics support of the Thoothukudi seaport, about 70,000 tonnes have been exported to Thailand, Malaysia and other destinations so far this year. However, the sudden rise in price following rain in Thoothukudi has prompted the exporters to rely on Gujarat salt, where a tonne could be purchased at Rs 500. Prior to the rain in Thoothukudi this month, a tonne of salt was marketed at prices ranging from Rs 800 to Rs 900, but now it has gone up to Rs 1,500.B Prabhakaran John, another exporter, said the US currency fluctuation had cast a shadow on the market. To boost salt exports, he said the government should hike export duty drawback.