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SALT manufacturers in Tuticorin are hoping for support on
infrastructure and concessions from Government levies - as available to
other industries - to face competition. There is nothing common about salt, it would seem, listening to the uses
that common salt can be put to.
Apart from serving to add taste to food, it is an important raw material
for a range of chemicals and Tuticorin is a major production centre, accounting
for about 25 per cent of India's production.
Despite this versatility, the industry is on a slide because its fortunes
are tied to that of the chemical industry, which is in the doldrums, according
to Mr N. Ratnavel, a leading producer and supplier of salts and allied
chemicals.
For instance, in the last decade the textile industry has received various
concessions in power tariff and excise and other forms of support.
The salt industry should be considered for similar measures as it is among
the largest provider of livelihood in Tuticorin.
Over three lakh men and women are employed directly and they earn about
Rs 75-90 a day.
Truckers bringing in goods to the Tuticorin port load salt on the return
trip.
Tuticorin produces about 12 lakh tonnes of salt, about 90 per cent of
Tamil Nadu's production, and more than half the quantity is used by the
chemical industries.
But production has been dropping in Tuticorin because the area under production
has been stagnating.
For instance, at nearby Vepalodai, production has dropped to 6,24,000
bags of 80 kg each in 2003 compared to 7,41,400 bags in 2002.
Tuticorin supplies salt to most States in the South, including coastal
States because conditions there are not conducive to salt-making, according
to Mr Ratnavel.
Producers in Gujarat have an edge over those in Tamil Nadu because of
certain natural advantages.
In Gujarat, where the pans are creek-fed, salt is produced at Rs 40-60
a tonne while in Tuticorin it costs about Rs 90.
This is because in most parts of the district producers have to pump up
ground water at a cost of about Rs 4.50 a unit.
According to Mr Ratnavel, the State Government should consider lower tariffs
for power to salt producers.
Power generation facilities are available close by and salt manufacturers
are among the bulk consumers.
Also, the infrastructure facilities
are not available. Road conditions are poor: what used to be a 20-minute
drive from Tuticorin to Vepalodai
now extends to nearly an hour. This drives up freight costs. |
