NAGAPATTINAM: Salt production in Vedaranyam has touched a new high of 2.1 lakh metric tonnes, which is 120% of the annual target of 1.75 lakh tonnes. Though salt producers have achieved a multi-decade-high production owing to prolonged summer, intense heat and weaker rainfall over the season (February to October), the higher output has left them grappling with excess stocks and falling prices.
Salt production in the region came to an end as Northeast monsoon began with rain on Wednesday. Producers said unsold salt stocks in the region currently stand at 1.25 lakh tonnes against approximately 40,000 tonnes at the end of last season. This marks a significant increase from last year, when rain-related disruptions limited production to around 40% of the target.
“The price usually stands at Rs 1,200 per tonne. But, salt is now being sold for Rs 700 a tonne, affecting small-scale producers,” said V Senthil, secretary of the Small-Scale Salt Manufacturers’ Federation. Producers said the cost of producing a tonne of salt is around Rs 600-Rs 750 during the initial stages of production involving setting up the pans.
Salt production for the current season began as usual in January and the dry weather allowed it to continue for a longer period without much interruptions.
P Sundaramoorthy, a small-scale salt producer, said the sharp fall in salt prices has raised concerns among producers “If prices fall further, we may incur losses,” he said.
Producers are hoping that demand would pick up during the rainy season, allowing them to sell their accumulated stocks.
“However, we are uncertain whether the salt we have stockpiled will fetch better prices during the monsoon,” said Senthil.
Producers said the problem has been particularly difficult for small operators, who have less capacity to absorb losses or hold large quantities of unsold salt. “Since the production is higher this year elsewhere too, buyers were able to get salt from Thoothukudi and other places with more accessibility,” Senthil added.
Edible and Industrial salt is produced in Agasthiyampalli, Kodiyakkadu and Kadinalvayal, where salt is produced across nearly 3,000 acres by around 800 small-scale producers. Around 60% of the salt produced is edible and 40% industrial. The salt is supplied to Andhra Pradesh, Karnataka, Kerala and various parts of Tamil Nadu.
Earlier Senthil reported that around 30% of the small-scale salt producers stopped production from mid-August as they were unable to bear the additional expenses amid the sharp decline in the number of buyers.