From a shackled industry, which had to resort to imports to meet domestic demand, the Indian salt industry has come a long way. Today, India is the fourth largest salt producer in the world with a record-breaking 14.5 lakh tonne production this year. Already there are indications of a new record being created in the current fiscal what with the salt department pegging production estimates at a whopping 16-18 lakh tonnes.While this is undoubtedly an achievement in itself considering the time span of less than half a century that it took to traverse, yet the salt industry has little reason to cheer about. For, the bumper production has brought in its wake a crisis of plenty, with the manufacturers being forced to sell at prices below their actual production costs. That apart, the industry is also beset with many seemingly insurmountable problems.
For one, survival itself has become a tough following the drastic slump in demand from the main users namely the domestic soda ash and caustic soda industries. Recession in user industries such as glass, paper and textiles have also contributed to the slump in demand for the two chemicals. Meanwhile, the salt manufacturers blame the government for this, mainly for not restricting imports which have crippled both these user industries.
The Centre's recent decision to impose anti-dumping duty on import of these chemicals from China has been hailed widely by the salt industry. This measure, according to them, will result in healthier balance for all concerned -- the salt, soda ash and caustic soda companies.
The belt-tightening measures being adopted by the soda ash and caustic soda industries -- which are on the look out for quality industrial salt -- are also affecting the domestic industrial salt market. These industries will not save on processing costs using quality salt but will only equip them to compete with the cheaper dumped products. Better quality products will also give these players a foothold in fiercely competitive global markets.
In view of all this, salt industry observers feel that unless the bigwigs enter both the salt manufacturing and user industries in a big way and exports improve significantly, the markets for industrial salt will continue to stagnate. For that matter even shrink further.