As the salt production has gone unhindered by rain so far, the producers are optimistic of getting higher yields this year. Meanwhile, the prices have fallen due to a rise in supply.
Unlike last year, when the production was hit by around 40% due to unseasonal rains in the months of March and April, 2019 has not witnessed any significant downpour since the production started. Further, the winds have also been good, aiding the salt production.
About 45% of the yearly production — over 10 lakh tonnes — has been achieved so far, said A.R.A.S. Dhanabalan, secretary, Thoothukudi Small Scale Salt Manufacturers Association. This year, if the conducive situations continue, it is expected that 90% of the average yearly production of 25 lakh tonnes would be reached by October, he added.
However, as the supply is going up, the prices have come down to around ₹700-800 per tonne. Last year, the salt was sold for around ₹1000 due to the reduced supply.
“The wages were increased for labourers last year by around ₹50 per day. Further, the overhead including cost of electricity is also significantly high,” he says. “With the current prices, it would only allow us to recoup the cost of production.”
As the prices are low, producers are keeping some of the salt in their inventory. “The producers are now hoping for the prices to pick up,” said Mr. Dhanabalan.
Further, the traders are expecting the salt export, which is around 2,500 tonnes every week, to pick up and contribute a sizeable chunk of their sales, he said.
