Salt Industry in Kutch

Kutch is bestowed with a long coastline and due to scanty rainfall, dry-weather; fairy high temperature, high wind velocity and suitable soil conditions, the region is extremely rich in salt deposits. Kutch is a major producer of salt in India and its production is also significant globally. India is ranked fourth after the US and China in global production of salt. The average annual production of salt in India is 17.8 million tones and in the year 2002, Gujarat produced 13.2 million tonnes (74%) of the total common salt in India and Kutch is the largest producer in the state.

Around 70 % of the salt produced in India is sea salt. Out of the total common salt produced in Gujarat significant part is produced in Kutch. Salt is a major and essential component of food and important raw material for various salt-based industries such as soda ash, caustic soda, chlorine, sodium metal, hydrochloric acid etc. The per capita consumption of salt in India is 12 kg (edible and industrial). It is estimated that the present annual demand for salt in India is 12.5 million tonnes, inclusive of 6 million tonnes for edible uses and 6.5 million tonnes for industrial usage. In Kutch, common salt is largely utilized for producing iodized edible salt and around 5.5 million tonnes of salt is exported annually.

Salt Production

The main salt production season begins in the month of November and is up to the month of March, often extending up to the month of June. Out of the average annual production of 17.8 Million Tonnes of salt in India, Gujarat produces about 13.2 million tonnes (74%) and Kutch is the largest producer in the state.

Export of Salt

Export of common salt and iodised salt is permitted under Open General License (O.G.L). Salt is exported mainly to Japan, Philippines, Indonesia, Malaysia, Nepal, Bhutan etc. India has, for the first time, exported 32,500 tonnes of common salt to the US during December 2002, creating a history of sorts.

Already increased exports to the large salt importing countries namely Japan, the North & South Korea and Malaysia, are being projected. Traditionally, exports from India have largely been confined to the small markets of Bangladesh, Nepal, East Africa, and some of the South-East Asian countries. Though India succeeded in making entries into the large salt importing markets of Japan and DPR Korea as far back as the mid-sixties, it could not sustain this for long.

Japan turned its back on imports from India because apart from the quality differential, the vessels engaged for transporting this cargo had to suffer idle time delays because of pre-berthing detention and slow turnaround because of poor cargo handling productivity. Mexico, another major exporter of salt, exploited the situation. It not only improved quality standards but also developed state-of-the-art loading facilities at ports.

There is substantial scope for improving export performance provided India attends to certain preconditions necessary for making a dent in the International Salt Trade.

Prospects of Salt Industry in Kutch

Increasing exports is a lucrative proposition in view of the rising price spiral of salt in the international markets. The export demand for bulk as well as bagged edible salt is increasing. While Japan and the Koreas are undoubtedly the largest markets for bulk salt, the markets with the best potential for absorbing edible salt exports are Kenya, Nigeria, Tanzania, Zambia, Zimbabwe, Dubai, Muscat, Kuwait and Oman.

Turning India into a global player in Salt trade is not a farfetched dream. Once the pre-conditions of containing trade logistics costs, improving quality of salt and setting up mechanized handling facilities at ports are fulfilled, India, which is today ranked the fourth-largest producer of salt, has the potential to emerge as a dependable source of supply.

Even if India corners a reasonable 20% share in the International trade, it would need to boost its current production by 30-40%. The only option for enhancing production is to bring more area under salt cultivation since the prospects of any increase in per acre yield (presently in the range of 60-65 tonnes per acre in Gujarat and well below that in other states) is remote. There is a need to increase the area under salt cultivation approximately by 1 Lakhs Acres.

Kutch is best positioned to grab this opportunity for the following reasons:

  • Kutch region is most amenable and ideal for salt production and it has the best yield in the country (i.e.65-70 Tonnes per Acre).
  • Large tracts of wasteland available for salt cultivation.
  • Availability of two large ports in the region (i.e. Kandla and Mundra), which are advantageously placed for exporting Salt to the Middle East and African markets.