Thoothukudi awaits 2nd big salt consignment from Gujarat
The largest salt producer in India, Gujarat, is sending 50,000 tonnes to Thoothukudi to replenish merchants who relied largely on Thoothukudi and are left with no choice but to ship it from the northwestern state.
Salt pans in Thoothukudi
MADURAI: The Thoothukudi salt industry is waiting with bated breath for the second consignment of Gujarat salt, its key competitor, eating into the south TN salt manufacturer market. Local stock has drastically come down after facing a loss of ground to the northwestern state for some time now.
The largest salt producer in India, Gujarat, is sending 50,000 tonnes to Thoothukudi to replenish merchants who relied largely on Thoothukudi and are left with no choice but to ship it from the northwestern state.
Salt manufacturer cum exporter and former Chairman of Confederation of Indian Industry (CII), Thoothukudi Michael Motha told DT Next on Friday that the Gujarat consignment is expected to reach in a week.
A couple of weeks ago, 32,000 tonnes of salt from Gujarat were shipped to Thoothukudi, which usually maintains 30 per cent of carry-forward stock. But this year, stocks have suffered a drastic decline, triggering a price surge. Four months have gone by, but salt production is not yet in full swing in 2025, primarily due to the rains. Currently, the first-grade Thoothukudi salt is priced anywhere from Rs 4,800 to Rs 5,000 a tonne and the second-grade salt at Rs 2,800 to Rs 3,000 a tonne. Further, Motha said transportation of salt from Gujarat is not an expensive issue as the total landing cost is Rs 2,800 a tonne.
The Thoothukudi salt industry suffered a crippling blow in December 2023 when floods caused devastation and in 2024 rains became frequent almost every month. Unrelenting spate of rains, which plays spoilsport for the salt industry dependent on sunshine, meant that Thoothukudi was brought to its knees.
According to D Chandra Menon, president of the Tuticorin Small Scale Salt Manufacturers Association, unseasonal rains wreaked havoc for production. The average production from January to April is about 35 to 40 per cent, but it has not even touched 10 per cent during this period this year, he said. As stocks fell to a new low and to meet supply demands, large quantities of salt were shipped from Gujarat for the time, Menon said.
