Salt manufacturers in the city, a major salt-producing centre, are worried about their mounting stocks, as foreign countries are increasingly opting for the commodity from Gujarat at a cheaper rate.
"This is the trend till December, 2011. Since the production cost is less in Gujarat, they can sell it for a lesser price. Moreover, the power tariff is high for salt production in Tamil Nadu," Tuticorin Small Scale Salt Manufacturers' Association Secretary A R A S Dhanabalan said.
Though 40 lakh tonnes of salt was exported from India in 2011, Tuticorin could export only 1.6 lakh tonnes, down from three lakh tonnes in 2010. There has been a steep fall in the price of salt, he said. He said China imported 20 lakh tonnes of salt from Gujarat, which accounts for 95 per cent of the country's exports.
Gandhi Irwin Salt Manufacturers Association President M S A Peter Jebaraj said he expects prices to fall further, going by the present trend.
Already the price per tonne has come down Rs 700. He feared there would be further accumulation of stocks once salt production commences by this month-end or mid-February. Despite the situation Jebaraj said production would commence as per schedule to ensure the workforce was not impacted.
