About Salt Industry

7/30/2019 About Salt Industry

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India is the third largest salt producing country in the world (after

the US and China) with an average annual production of about 148

lakh tones.

In a very short period of time sufficiency was achieved (in 1953) and

made a dent the export market. Since then, the country has never

resorted to imports. Exports touched an all time high of 1.6 million

in the year 2001.

The per-capita consumption of salt in the country is estimated at

about 12 kg, which includes edible as well as industrial salt. The

current annual requirement of salt in the country is estimated to be

60 lakhs tones for industrial use. Caustic soda, soda ash, chlorine

etc., are the major salt-based industries. Besides about 15 lakhs

tones of salt is exported every year.

Sea salt constitutes about 70% of the total salt production in the

country. Salt manufacturing activities are carried out in the coastal

states of Gujarat, Tamil Nadu, Andhra Pradesh, Maharashtra,

Karnataka, Orissa, West Bengal Goa and hinter land State of

Rajasthan. Among these States only Gujarat, Tamil Nadu and

Rajasthan produces salt surplus to their requirement. These three

states produce about 70%, 15% and 12% respectively of the total salt

produced in the country and cater to the requirement of all the salt

deficit and non-salt producing states.


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Private sector plays a dominant role contributing over 95% of the

salt production, while the public sector contributes about 2-3%. The

co-operative sector contributes about 8% whereas the small-scale

sector (less than 10 acres) accounts for nearly 40% of the total salt

production in the country.

Salt Works And Acreage Under Salt Production

There are about 10107 salt works, mostly in small sector engaged in

the production of salt. The total area under salt production is about5.0 lakhs acres. The salt manufacturing activities provide direct

employment to about one-lakh presons per day.

Distribution of Salt

Railways play an important role in transporting salt from three

surplus states to the entire length and breadth of the country. On an

average, 55% of edible salt is transported by rail from production

centers. The remaining quantity moves by road and waterway.

Iodized Salt

With a vies to ensure universal access of iodised salt for the

prevention and control of goiter and other iodine deficiency

disorders in the country, Salt Commissioner's Office has been

identified as the nodal agency for creation of adequate salt

iodisation capacity, its distribution and quality monitoring at


3/10

production centers, under NIDDCP. Salt Department has granted

permission to more than 878 salt iodisatios units with an annual

installed capacity of 112 lakh tones so far.

Exports

Export of common salt and iodised salt is permitted under Open

General License (O.G.L.). Salt is exported manly to Japan,

Philippines, Indonesia, Malaysia, Nepal, and Bhutan etc.

India has, for the fist time, exported 32,500 tonnes of common salt

to the US during December 2002, creating a history of sorts.

Liberalizatin and Simplification of Procedure

Following amendments to Central Excise and Salt Act, 1944 in 1996,

de-licensing the salt industry and salt Cess Rules, 1964 in 2001 and

introducing self-removal procedure (SRP) instead of permit system

for payment of cess and removal of salt from salt factories, several

registers have been discontinued or re-organised.

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SOURCES OF SALT:The main sources of salt in India are

Sea brine Lake brine Sub-soil brine and Rock salt deposits

MAJOR SALT PRODUCING CENTERS:Sea water is an inexhaustible source of salt. Salt production along the coast is limited byweather and soil conditions. The major salt producing centres areMarine Salt works along the coast of Gujarat (Jamnagar, Mithapur,Jhakhar, Chira,Bhavnagar, Rajula, Dahej, Gandhidham, Kandla, Maliya, Lavanpur), Tamil Nadu (Tuticorin,

Vedaranyam, Covelong), Andhra Pradesh (Chinnaganjam, Iskapalli, Krishnapatnam,Kakinada & Naupada), Maharashtra(Bhandup, Bhayandar, Palghar), Orissa (Ganjam,

Sumadi) and West Bengal (Contai)Inland Salt Works in Rajasthan using lake brine and sub-soil brine viz. Sambhar Lake,Nawa, Rajas, Kuchhaman, Sujangarh and PhalodiSalt works in Rann of Kutch using sub-soil brine viz: Kharaghoda, Dhrangadhra;SantalpurRock Salt Deposits at Mandi in the State of Himachal PradeshThe major salt producing centres are given in Map-1PROFILE & STATUS OF SALT INDUSTRYThere are about 13000 salt manufacturers engaged in production of Common salt in an

extent of about 5.50 lakh acres in the Country. It is estimated that 90 per cent of the total

number of salt manufacturers are small salt producers (having an individual extent of lessthan 10 acres for salt manufacture), 5.5% is large scale producers (having an individual

extent of more than 100 acres) and 4.5 % is medium scale producers (having an individualextent between 10 and 100 acres)

Average Annual Production of Salt in India is 176 lakh tones whereas ever highproduction of 199 lakh tones was recorded during 2005 followed by 181 lakh tonnes during

2006. Gujarat, Tamil Nadu and Rajasthan are surplus Salt producing States accounting for

about 96 per cent of the Countrys production. Gujarat contributes 76 per cent to the totalproduction, followed by Tamil Nadu (12 %) and Rajasthan (8%). The rest 4% production

comes from Andhra Pradesh, Maharashtra, Orissa, Karnataka, West Bengal, Goa, Himachal

Pradesh, Diu & Daman. On an average 62% of the total production is from Large saltproducers followed by small scale producers (36%) and rest by medium scale producers

The average annual supplies of salt for human consumption is about 57 lakh

tonnes and that for industrial consumption is about 83 lakh tones; 57% of the salt forhuman consumption moves by rail and 43 % by road. 89% of the salt for industrialconsumption moves by road, 7 % by rail and 4% by coastal shipment to various industries;

when the total indigenous supplies is taken, 69 per cent moves by road, 27% moves by rail

and 3% by seaIndia exports surplus production of salt to the tune of about 25 lakh tonnes on

an average; During the year 2005, a record export of 38 lakh tonnes was achieved primarily


10/10

due to surge of demand from China. Other major countries importing salt from India areJapan, Bangladesh, Indonesia, South Korea, North Korea, Malaysia, U.A.E., Vietnam, etc.

Government of India has adopted the strategy of Universal Salt Iodisation andConsumption for elimination of Iodine Deficiency Disorders (IDD) in the country under the

National Iodine Deficiency Disorders Control Programme(NIDDCP). Iodine is supplementedin the diet through Iodised Salt for combating IDD. The Programme was started in 1962

initially confining to Goitre endemic areas but after 1984 it was implemented throughout thecountry. Thus as on date a significant progress has been made on Universal Salt

Iodisation. The country produces about 50 lakh tones of Iodised salt and about 49 lakh

tones of iodised salt is supplied for human consumption against the requirement of about 54lakh tones for entire population. The country has created more than adequate salt

iodisation capacity of over 110 lakh tones.Salt Industry is labour intensive in the country. About 1.4 lakh labourers are

employed daily in the Salt Industry on an average. Salt Commissioners Organisation hasput in place a number of Labour Welfare Schemes ameliorating the working and living

conditions of salt labourers.GOVERNMENT OF INDIAS ROLE IN DEVELOPMENT OF SALT INDUSTRY: Salt is a Central subject in the Constitution of India and appears as item No.58 of the Union

List of the 7 th Schedule, which reads:a) Manufacture, Supply and Distribution of Salt by Union Agencies; andb) Regulation and control of manufacture, supply and distribution of salt by otheragencies.Central Government is responsible for controlling all aspects of the Salt Industry. SaltCommissioners Organisation, an attached Office under the Ministry of Commerce & Industry

(Department of Industrial Policy & Promotion), Government of India, is entrusted with the

above task.Government of India has delicensed Salt Industry by deleting provisions

relating to Salt in the Central Excise & Salt Act, 1944 vide Finance Bill of 1996-97. In line

with Government of Indias Policy of Liberalisation and simplification of Procedures, the SaltCess Rules, 1964, have been amended vide Notification No.GSR 639(E) dated 04.09.2001.Salt Commissioners Organisation plays a facilitating role in overall growth and development

of Salt Industry in the country.The thrust of the Salt Commissioners Organisation currently is on the following:

Technological Development and Quality Improvement Salt Iodisation Programe for combating Iodine Deficiency

Disorders Infrastructure Development promoting Salt Industry Labour Welfare Schemes for Salt Workers particularly housing

under NAMAK MAZDOOR AWAS YOJNA Export of Salt

About Salt Industry

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