The trend of production, export and import of salt in India

Gujarat is located in the subtropical highlands of Western India. The coastal areas of the state remain dry for most of the year, resulting in large amounts of salt production. The state accounts for a large portion of India's total salt production. Kharaghoda, Bhavnagar, Porbandar and Rann of Kutch in Gujarat are the major salt-producing regions. The main sources of salt in India are sea brine, lake brine, groundwater brine and rock salt deposits. Most of the salt in Gujarat comes from the sea and ocean. Phalodi, Sambhar and Bidhannagar are known for their salt industry.

Table 1 discusses the quantity of salt production in India. It has been found that salt production has increased in the last two decades, but not steadily. Salt production was 17879.2 thousand metric tonnes in 2002-03 and 28058.3 thousand metric tonnes in 2019-220. It declined in 2020-21 and reached 26563.9 thousand metric tonnes. Finally, total production was 26009.0 thousand metric tonnes in 2022-23. The leading producers with prominent marine salt works in Gujrat are Lavanpur, Maliya, Kandla, Gandhidham, Dahej, Rajula, Bhavnagar, Chira, Jhakhar, Mithapur and Jamnagar. The main sites of salt production in Tamil Nadu are Covelong, Vedaranyam, and Tuticorin. Naupada, Kakinada, Krishnapatnam, Iskapalli, and Chinnaganjam are the leading salt-producing sites in Andhra Pradesh. Palghar, Bhayandar and Bhandup are the main salt-producing areas in Maharashtra. Sumadi and Ganjam are the primary locations for salt production in Odisha.

Table 2 depicts the production of iodised salt in India. It has been found that the total production of Iodised salt in India was 36.89 lakh tonnes in 2002-03 and 78.58 lakh tonnes in 2020-21. It declined in 2021-22 and reached 71.98 lakh tonnes. Rajasthan is famous for its inland salt pans that utilize the salt water from the lakes and subsoils of the region such as Phalodi, Sujangarh, Kuchhaman, Rajas and Sambhar Lakes. Mandi salt deposits are the source of salt for Himachal Pradesh. Sambhar Salt Lake is the largest Salt Lake in India and is the source of most of the salt production in Rajasthan. It extends across Sikar, Ajmer, Jaipur and Nagaur districts. The salt is produced by evaporation of brine and is managed primarily by the state-owned Sambhar Salts Ltd. Kshar salt is a unique natural iodized alkaline salt. It is extracted from Sambhar Lake near the city of Jaipur in Rajasthan, India. It is the only salt in the world with a pH value of roughly 9.5. Pan, reshta and kyar are the major salt types in the state. Rajasthan's salt industry remains labour-intensive and most of the production comes from small and medium-sized salt producers who do not have access to modern technology.

Table 3 discusses the production of common salt in leading states of India. It has been found that Gujarat is the leading salt-producing state in India followed by Tamil Nadu, Rajasthan and Andhra Pradesh. Total production of salt was 237.11 lakh tonnes in 2016-17 and 244.20 lakh tonnes in 2018-19. Finally, it was 216.39 lakh tonnes in 2020-21. Total production of salt was 24 lakh tonnes in Tamil Nadu and 23.93 lakh tonnes in 2020-21. Rajasthan produced 24.88 lakh tonnes in 2016-17 and 21.56 lakh tonnes in 2020-21. Andhra Pradesh produced 4.01 lakh tonnes in 2016-17 and 2.85 lakh tonnes in 2020-21. Maharashtra produced 1.52 lakh tonnes in 2016-17 and 0.70 lakh tonnes in 2020-21. The total production of salt in Karnataka was 0.14 lakh tonnes in 2016-17 and 0.12 lakh tonnes in 2020-21. Therefore, salt production declined in 2020-21 in major salt-producing states of India. The Corona pandemic was the main cause of that.

Table 4 discusses the sources of salt production in India. There are two sources of salt in India, namely sea and inland. Sea water is the main source of salt in India. As Rajasthan is a landlocked country, inland is the best source of salt production. Gujarat is the main salt-producing nation in both sea and inland. The Salt production plant in West Bengal is one of the oldest salt places in India. The outstanding locations of manufacturing are Tamlook and Hijli inside the Midnapore district, and the Sunderbans in the 24 Parganas. Goa contributed to India's salt production for hundreds of years. Goa's salt is thought for its flavour, which comes from the minerals inside the sea. It's used for cooking, pickling, making sausages, keeping fish, and fertilizing plants. Currently simplest 25-30 salt pans closing in Goa. Changes in land use, non-availability of labour and a lack of maintenance of the bunds are some of the reasons. Salt pans are scattered across numerous talukas, with North Goa’s Tiswadi and Pernem areas being outstanding gamers. The community that owns the salt pans goes by the surname Agarker. Goa’s salt-making tradition, although dealing with demanding situations, nevertheless holds the ability to make its mark on the culinary landscape.

Table 5 discusses the export quantity of salt in India. It has been found that the quantity of exported salt is increasing continuously. The exported salt was 1365.90 thousand tonnes in 2002-03 and 8274.79 thousand tonnes in 2016-17. It finally reached 8424 thousand tonnes in 2021-22. Tamil Nadu is the second largest salt-producing state in India after Gujarat. The state contributes 12 per cent of salt production in the country. Thoothukudi, Kancheepuram, Viluppuram, Nagapattinam and Ramanathapuram are the major salt-producing districts. Tamil Nadu Salt Corporation is the leading salt manufacturer in the state and produces industrial salt and fortified edible salt. Thoothukudi district, which has a Salt Lake of nearly 3,000 acres at Vedaranyam, which is considered the second largest salt-producing district in the state, is the largest salt-producing district in Tamil Nadu. The potential for the development of the salt-based marine chemical industry is very high. Thoothukudi salt industry has the potential to improve productivity and quality. Thoothukudi is called the salt city of India. The quantity of salt produced in the state has decreased significantly in the last three years, leaving the producers with little stock to sell during the off-season. The salt produced in the state is used for industrial purposes and is also refined and used as edible salt.

Salt production takes place in Vedaranyam over an area of ​​about 6,000 acres. Small-scale production is carried out in villages like Kodiyakarai, Kadinalvayal, Kailavanampettai, Kodiyakadu and Agasthiyampalli in Vedaranyam block over an area of ​​about 3,000 acres. India is a major exporter of salt and some of its products are exported around the world. The largest exporters of Indian salt are the United States, Japan and the United Arab Emirates. The process of exporting salt from India involves many steps including transportation, quality control and customs. Salt companies in Gujarat and other parts of India work closely with shipping companies to transport the salt to its destination. Quality control is an important factor in Indian salt exports. Salt manufacturers in Gujarat and other parts of India ensure that their products meet international quality standards required for export. Before food distribution, salt is tested for purity, iodine content and other parameters. Customs clearance is another important step in the salt export process. Exporters have to comply with various rules and regulations set by the government of the importing country. This may require obtaining certifications, permits and licenses, which can be a long and complicated process.

Table 6 discusses the port-wise export of salt and its value in India. It has been found that the highest quantity of salt is exported through Kandla port followed by Jakhau, Mundra, Navlakhi, Tuticorin, and Pipavav. Nearly 5069.88 thousand tonnes of salt were exported through Kandla port in 2017-18, and 5733.60 thousand tonnes in 2019-20. It declined in 2020-21 and was 2616.01 thousand tonnes. 1888.32 thousand tonnes was exported through the Jakhau part in 2017-18, and 2258.70 thousand tonnes in 2019-20. It declined in 2020-21 and was 1221.79 thousand tonnes. Nearly 144648 thousand tonnes of salt was exported through Mundra part in 2017-18, whose value was 18913.98 lakh rupees. It was 31081.76 thousand tonnes in 2019-20. It declined in 2020-21 and was 2433.62 thousand tonnes. 270.45 thousand tonnes was exported through Navlakhi port in 2017-18, and 193.10 thousand tonnes in 2019-20. It declined in 2020-21 and was 154.54 thousand tonnes. Nearly 125.21 thousand tonnes of salt was exported through Tuticorin port in 2017-18, whose value was 4367.98 lakh rupees. It was 56.03 thousand tonnes in 2019-20. It declined in 2020-21 and was 22.6 thousand tonnes. Nearly 1.95 thousand tonnes were exported through Pipavav port in 2017-18, and 3.64 thousand tonnes in 2019-20. It declined in 2020-21 and was 1.87 thousand tonnes. Therefore, the export of salt quantities and its value declined in 2020-21 due to the coronavirus pandemic.

Table 7 depicts the import of salt in India. It has beenfound that the import quantity of salt has declined in the last 15 years. The total import of salt was 30645.0 tonnes in 2008-09, whose value was 522 lakh rupees. It declined further and was 5288.0 tonnes in 2018-19. The total quantity of salt imported was 3018.0 tonnes in 2020-21, whose value was 220.25 lakh. Therefore, the total import of salt has declined nearly 10 times in the last 15 years.

Table 8 depicts expenditure on development and labour welfare works. It has found that total expenditure on development and labour welfare works increased continuously, but declined in 2022-23. Total expenditure on development works was 2.58 lakhs in 2016-17, 5.14 lakh crores in 2020-21, and finally 0.09 lakh crore in 2022-23. Total expenditure on labour welfare works was 2.45 lakh rupees in 2016-17, 2.32 lakh rupees in 2019-20, and finally 1.46 lakh in 2022-23. Total expenditure on other works was 33.91 lakh and 41.01 lakh in 2020-21, and finally 32.06 lakh in 2022-23.

Let us analyse the regression analysis between the production, export and import of salt in India. Data of the concern variables are discussed in Tables 1, 5, and 7. The production of salt is the dependent variable. Export and import of salt are independent variables. Data has been analysed based on information from 2008-09 to 2020-21.

a) shows that R square is found to be 0.758138, showing, that the degree of relation between the independent variable X, and the dependent variable Y. Table (8-b) shows that thep-value (0.011) is lower than the critical value at 5% level of significance (p< 0.05), therefore we will reject the null hypothesis-1. The p-value (0.886) is higher than the critical value at a 5% level of significance (p> 0.05), therefore we will accept the null hypothesis 2. So, it is concluded that (a) there is a relation between the production of salt and the export of salt in India, and (b) there is no relation between the production of salt and the import of salt in India.

The export value of salt in India was 85007.03 lakh rupees in 2016-17 and reached 86881.77 lakh rupees in 2020-21. On the other hand, the import cost of salt in India was 543.93 lakh rupees in 2016-17 and 220.25 lakh rupees in 2020-21. Therefore, export revenue from salt is far higher than the cost of import. It implies the positive financial status through the export-import value of salt in India.

Role of Gujarat in Salt Production in India

India is one of the world's largest salt producers, with salt obtained from a variety of sources including salt pans, lakes, and mines. The most important salt mines in India are the salt flats in the coastal areas of Gujarat and Tamil Nadu. These salt pans cover an area of ​​over 2.5 million hectares and produce over 70 per cent of India's salt. Gujarat's salt companies are India's largest salt producers. Gujarat's coastline makes it an ideal location for salt production. Gujarat's salt fields cover more than 1.3 million hectares and produce about 60 per cent of India's salt. The Kutch region of Gujarat is famous for its salt production and many salt producers in Kutch produce good salt for domestic and international markets. Gujarat is the largest salt-producing state in India. It is often built on coasts that are affected by unpredictable rains and cyclones. Prices are increasing due to the decline in sea salt production facilities and increasing demand for food, commercial salt and exports.

Table 9 Discusses the average yield of salt in different salt-producing places in Gujarat. It has been found that the average yield of salt in Dhrangadhra/Kharaghoda, Gandhidham/Chirai, and Halvad increased during the period. The average yield of salt in Halvad was 58 tonnes per acre and 155 tonnes per acre respectively in in 2016-17 and 2020-21. The average yield of salt in Dhrangadhra/Kharaghoda was 57 tonnes per acre in 2016-17, and 162 tonnes per acre in 2020-21. On the other hand, the average yield of salt in Jamnagar, South Gujarat and Bhavnagar/ Rajula declined. The average yield of salt in Jamnagar was 80 tonnes per acre in 2016-17, and 68 tonnes per acre in 2020-21. The average yield of salt in South Gujarat was 64 tonnes per acre in 2016-17, and 55 tonnes per acre in 2020-21. The average yield of salt in Bhavnagar/Rajula was 70 tonnes per acre in 2016-17, and 68 tonnes per acre in 2020-21. The maximum of India's salt production comes from the country of Gujarat. The major sources of salt in India are sea salt, lake salt, groundwater salt, and rock salt deposits. Most of Gujarat's salt comes from the ocean. The Gulf of Khambhat contributed to approximately 24 per cent of the nation's salt manufacturing. Bhav Nagar is a main manufacturer of sea salt near the Gulf of Khambhat.

Table 12 depicts particulars of cooperative societies engaged in salt manufacture in Gujarat. It has been found that the area inland under cooperative societies slightly declined from 2018-19 to 2020-21., but the total production of salt was increased during the period. Total production increased nearly three times during the period. The actual area worked inland was also increased. The number of cooperative societies and its members declined during the period. The total area and actual working areas of marine under cooperative societies for salt production increased in Gujarat during the period. Total production of salt was increased nearly 15 times during the period. The number of cooperative societies and its members increased during the period.

The major salt-producing districts of Gujarat include Bhavnagar, Kala Ghoda, Porbandar and Rann of Kutch. Salt companies in Gujarat tie up with shipping companies to transport the salt to its destination. Salt production in Gujarat has declined in recent years due to climate change, including cyclones, unseasonal rains and unpredictable weather. Salt workers in Gujarat face harsh conditions, including extreme temperatures, long working hours and health problems. About 45,000 Agariyas produce salt in the Kutch grasslands of Gujarat, which are shared by five districts of the triangular desert of Morbi, Kutch, Surendra Nagar, Patan and Banaskantha.

Table 13 discusses the status of leading salt-producing districts in Gujarat. Kutch, Dwarka, Bhavnagar, and Surendranagar are the major salt-producing districts in Gujarat. An estimated 45,000 Agariyas make salt in Gujarat’s Little Rann of Kutch. This area falls under the Banaskantha, Patan, Surendranagar, Kutch, and Morbi districts. The state produced 228 lakh tonnes in 2022. The produced salt is processed for human consumption, but also as raw material for other products, like caustic soda, fertilisers, and paints. Of the total salt produced in Gujarat, 31 per cent comes from Agariyas in the Little Rann of Kutch. However, in the last few years, the production of salt has seen a decline across all salt-producing states. In Gujarat, it fell by four per cent in just six years between 2016 and 2022. The major reasons are the extension of monsoons and increasing cyclones on the coast.

Challenges before salt industry and government policies

India’s salt export industry faces many challenges, including stiff competition from other salt-producing countries, changes in global demand and prices, and logistical challenges related to transportation and customs. However, there are still many growth opportunities for the salt export sector. The demand for salt is expected to increase in the coming years due to the growing food industry and the advancement of processed foods. This provides an opportunity for salt companies in Gujarat and other parts of India to expand their operations and increase their business. Indian salt companies are also exploring new markets for salt exports, such as Africa, where the demand for quality salt is increasing.14, 15, 16, 17, 18 India has also signed several trade agreements with countries around the world, opening up new opportunities for salt exporters. Another source of opportunity for Indian salt companies is the increasing demand for speciality salts such as Himalayan red salt and sea salt. This salt has become popular among health-conscious consumers looking for a healthier alternative to vegetable salt.

India’s salt industry faces many challenges, including climate change and health and welfare issues for salt workers: unpredictable weather conditions such as floods and unseasonal rains, shortened salt season and reduced production demand. Salt workers are seasonal migrant workers who face hazardous working conditions and adverse weather conditions. They often lack adequate sanitation and hygiene protection and may lack access to basic amenities such as drinking water and toilets. Without a guaranteed minimum price, farmers face low prices and workers face economic stagnation due to lack of good wages. The salt industry faces the challenge of meeting demand. The salt industry also faces transportation problems. The wages of salt workers, who often have no minimum wage or social security, are determined by the company. The salt industry faces major challenges in meeting the needs of salt farmers and workers and responding to the crisis. The biggest problem in the salt industry is the timely transportation of salt collected from the home states of Gujarat or Tamil Nadu to other regions. Tractors and trucks carry salt for short distances, while trains carry salt for long distances. During the autumn salt season, the railways could not provide enough rakes. In recent years, climate change has accelerated, causing the salt season to decrease.

The use of salt treatment equipment to reduce all costs varies with salt production and leads to good results. The government has many policies to promote the salt industry, including the health scheme, the Office of Intelligent Work and Quality Management, and the Scientific Research 1963. The Central Salt Operations Department also works with state governments to improve salt farming standards. The state government has implemented welfare programs such as life insurance, road construction, and safety packages for salt workers. The Office of the Salt Commissioner also provides financial assistance to support these efforts. The government aims to make all salt iodized. Iodized salt is now available for public distribution in many states. A tax is paid on salt to finance the salt industry, and the government imposes measures to regulate salt production, supply, and export. The Quality Control and Research Act of 1963 specifies quality standards for salt, including the percentage of sodium chloride, the percentage of moisture, and soluble and insoluble matter.