Tamil Nadu

Price slump worries salt manufacturers

— FILE PHOTO

sad: A view of saltpan at Vedaranyam.

VEDARANYAM: With the saltpans and their production shelved due to flooding of rainwater, the focus of the salt industry here has shifted to fetcha good price for the produce now.

An off-season, signified by the sight of mounds of salt, tightly confined in ‘ambarams’ wrung with fan-shaped palmetto leaves, normally would imply competitive prices for the industry.

But this year, salt prices are below normal with Rs.25 per quintal, whereas an ideal and remunerative price would be between Rs.35 to Rs.40.

There are problems for salt manufacturers here.

The decade-old grievance of the shelved rail connectivity is the first of their problems.

The meter gauge connectivity became unviable in view of the broad gauge conversions and the track was dismantled a decade ago. “Agasthyampalli station at Vedaranyam, while it was under operation, was the most revenue generating for the Tiruchi division. We have figures for that,” says, M. Meenashisundaram, Chairperson, Vedaranyam Municipality. Without the meter-gauge connectivity, transportation of salt produced here has been affected.

Road transport as the only alternative mode of mobility is fraught with its own difficulties.

There has been a rise in demand for trucks, which ferry goods to Karaikal Port that has become operational.

The production for this year was about 4.50 lakh tonnes, while the production for the corresponding period last year was 7 lakh tonnes. This year’s fall in production was attributed to rain in January and February, says A. Vedarathnam, member, Central Advisory Board for Salt; president, Vedaranyam Salt Manufacturers and Merchants Association and MLA, Vedaranyam.

Additionally, there is the problem of labour. Migrant workers from Central India work in the refinery here, says Mr.Vedarathnam. The daily wages have gone up with male workers paid between Rs.200 and Rs.250 for five hours of work. Migration-induced labour deficit and hike in wages have increased the incurred costs for salt manufacturers here.

Mr.Vedarathnam hopes that export of salt from Gujarat and Tuticorin, which have had a high production could fetch competitive bargain for salt manufacturers here as domestic demand would increase. Salt prices ought to go up during off seasons, which is during monsoons.

Increase in salt prices is healthy as it indicates increased rainfall and it augurs well for people since the prices of other commodities usually tend to go down, he says. Only competitive prices could help the 10,000 odd salt workers dependent on this occupation.

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