The Hindu Business Line : Salt-pans of the South

But high cost of power and poor transport facilities are affecting the industry's competitiveness, and salt manufacturers here are losing out to their counterparts in Gujarat, according to Mr N. Ratnavel, Managing Director, South India Bromine and Allied Chemicals Pvt Ltd.

The manufacturers supply all leading brands including Hindustan Lever, DCW and ITC. This segment is expected to expand with the growth in organised retailing. Most of the large retail chains including Reliance are in discussions with the salt manufacturers.

According to Mr Ratnavel, salt makers pump water from bore wells to fill the saltpans unlike producers in Gujarat who simply let in seawater into saltpans through tidal action. Power tariff in Tamil Nadu ranges between Rs 4.50 and Rs 4.95 a unit while in Gujarat it is a rupee cheaper.

Smallholdings

Also, the size of the holdings is small — 1,500 acres on average. In Gujarat saltpans range from 10,000 to 15,000 acres, he said.

The dependence on road transportation adds to their problems. The rail link between Tuticorin and the nearest major centre, Madurai, is stretched to capacity; railway officials say it is working to 120 per cent capacity, says Mr Ratnavel.

So manufacturers depend on road transportation, which is costlier.

Diversification on hold

With such disadvantages, the manufacturers are unable to diversify into manufacture of value-added salt for industrial use and for edible use like the free flow and vacuum salt.

According to statistics provided by the manufacturers, salt production in Tamil Nadu was about 21.67 lakh tonnes against Gujarat's 33.48 lakh tonnes. Over 90 per cent of this production is at units based in Tuticorin.

Of the total production, about 6.02 lakh tonnes is for edible use.

Over 10 refineries produce about 5,000 tonnes of refined salt a day.

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