Salt exports fall as Covid takes a toll
Demand for salt has slumped this season, hit substantially by the lockdown. The decline in exports, expected to drop 40 per cent this salt season following the slowdown, closure of restaurants since one and half months, and caustic and soda ash units running at lower capacities, is expected to cause a near-20 per cent fall in India’s demand.
The salt season runs from mid-october to June. This year, the season started 6-8 weeks late because of the extended monsoon, which has hit production. Bharat Rawal, president of the Indian Salt Manufacturers Association, said: “The salt production season usually starts from midOctober but started late this time because of the extended monsoon. This has resulted in 15-20 per cent lower production this year vis-à-vis last year.
However, the salt manufacturing industry is still holding 1 million tonnes of previous season’s stock. If there is no rain in Gujarat till June, which is normal, this part of production loss can be covered.” India produces 30 million tonnes (mt) of salt each year and over 10 mt is exported. Industrial use and consumption is 9-10 mt per annum each. The year has been disappointing on the demand front with exports already falling by 4 mt.
A senior executive of a large soda ash maker in Gujarat said: “Salt processing was hit because of most plants either running at a lower capacity or shutting down. There is a fall in demand for products manufactured from salt.” He said the production loss seen in the earlier part of the season was unlikely to hit industries.
Gujarat produces almost 80 per cent of India’s salt. Of its total production, four-fifth is produced in Kutch alone, with the rest coming from Saurashtra and other districts.
Shamji Kangad, secretary (honorary), Kutch Small Salt Association, said: “This season has seen a near-40 per cent (or 4 mt) fall in salt exports, following lower demand from China and other importers. This began earlier this year with the overall slowdown, which was not aggravated by Covid-19."