With the Kandla Port Trust (KPT) raising land lease rates for salt farming, small salt manufacturing units are finding it tough to survive. Following this, the Gandhidham Chamber of Commerce and Industry is set to meet the shipping ministry at Delhi soon to take up the issue with Centre.
KPT had increased lease rate from Rs 111 to a Rs 13,560 per acre, a whopping 12,000 per cent hike. The new rate will be effective from April 1, 2011, costing an additional 50 paisa per kg to the salt manufacturers.
Apart from approaching the Centre, members of the Gandhidham Chamber of Commerce and Industry are mulling going to court if the rates persist. "Most of the units are functioning since last 40-50 years and have developed all kinds of infrastructure in KPT for salt production. With the sudden and a large hike in lease rates, small manufacturers will be in trouble. We are going to meet officials of the shipping ministry for this and if issue doesn't resolve, we will go to the court," said Hiralal Parakh, president of Gandhidham Chamber of Commerce and Industry.
The Indian Salt Manufacturers' Association (ISMA) has also come in full support of the chamber for the move. "As per market rate the price hike is normal but it will affect small units of salt most as it is not viable for them," said Bachubhai Ahir, president of The Indian Salt Manufacturers’ Association (ISMA).
About 16,000 acre land comes under KPT for salt farming and there are about 150 units in it. Most of the units are working there since last 40 years. Annually approximately 3-3.5 million tonnes salt is produced under KPT area and more than 5,000 families are dependent on it.
Further, talking about the issue a KPT official said, "So far lease rate were not as per market price. Recently KPT had to auction 10 plots and on this basis lease rate were revised after 2005. If anyone can not afford the new lease rates, they can surrender the land."
