The Hindu : Tamil Nadu / Tuticorin News : Sops sought to safeguard sagging salt industry

Online edition of India's National Newspaper
Friday, Feb 11, 2005

Tamil Nadu

Tamil Nadu - Tuticorin

Sops sought to safeguard sagging salt industry

By Our Staff Reporter

TUTICORIN, FEB. 10. The Tuticorin Small-Scale Salt Manufacturers Association (TSSSMA) has urged the Centre and the State Government to take measures to safeguard the sagging salt industry in the district, which was plagued by ever-rising production costs.

Speaking to The Hindu , A. Peter Jebaraj, joint secretary, TSSSMA, said that owing to high electricity costs and labour charges, manufacturers were unable to bring down the production cost, which got reflected in the pricing of end products.

Owing to high prices, raw salt manufactured in this region was slowly sidelined by importers from countries such as Korea, Malaysia, Vietnam and Middle East, which had a cascading effect on exports.

He said that there was a 70 per cent decline in exports during 2003-04.

``Making the matters worse, recent rain had destroyed a large number of salt pans at Muthiapuram, Mullakadu, SPIC Nagar and Veppalodai, which plunged the small-scale manufactures into doldrums,'' he added.

In this scenario, according to Mr. Jebaraj, the Government should announce sops including power subsides and export incentives to augment the exports from Tuticorin.

Moreover, the Government should provide financial assistance on a war footing to those manufacturers in the small-scale category to reconstruct the damaged salt pans.

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