In Thoothukudi, market gains ground after three years

According to G Gragadurai, president, Thoothukudi Small Scale Salt Manufacturers Association, “It’s in stark contrast to a year ago, when salt price touched a new low, when it was sold even below production cost. Now, a tonne of manufactured salt fetches market price ranging from Rs 1,200 to Rs 1,500, whereas its price fell drastically to Rs 300 and Rs 400, last year.”

Gragadurai added that, “The contraction in production and shrinking stock supply were the key factors that primarily led to price escalation this year. Owing to intervention of unseasonable rains in summer in 2018, production has dropped by about 35 per cent, narrowing down the salt stock.”

Stating on the reasons for the market decline in the recent past, he added, “Salt production was unstoppable as Thoothukudi did not experience much rainfall. Adding to woes, shipments of salt in huge volumes from Gujarat, the largest producer in India, to Thoothukudi, cast a shadow on the market.”

According to ARAS Dhanabalan, secretary of the association, “Market price of this commodity could even go up further if production of new crop is delayed since currently, only limited stock are available. Normally, during non-productive season, salt pans would undergo reformation works. But such works were yet to take off this year, owing to recent rains. The reformation work in salt pans would most probably begin in the middle of December.”

TPS Pon Kumar, Thoothukudi based exporter of salt, says, “Since its market price rebounded abnormally, exports have not picked up since October. With salt price touching Rs 1,600 a tonne, of late, shippers could hardly come forward to purchase the finished product in Thoothukudi. While a tonne was priced at Rs 600 in Gujarat, the same quantity is marketed at almost threefold increase in price in Thoothukudi.”

“Salt export on the lines is expected to increase either in March or April next year once the new crop yields a considerable outcome,” the exporter added.

Thoothukudi salt department sources, added that since more rains were predicted by the IMD in December, there could be a delay in production next year.