Salt manufacturer Tata Chemicals said that it is feeling the pinch of railway freight price hikes. The company says it may soon be forced to increase prices.

The Budget saw a concession in duties on iodine (6 per cent excise duty cut and 2.5 per cent customs duty cut), which was expected to benefit iodised salt manufacturers. But Tata Chem officials say this is more than offset by the hike in freight price.

“We got a cut of just Rs 0.7 a kg on iodine, while the freight hike translates into an additional Rs 0.50 a kg of salt,” said Mr Ashvini Hiran, Chief Operating Officer, Consumer Products Business, Tata Chemicals. A one-kg pack of basic iodised salt costs Rs 14.

He was speaking at the sidelines of an event to launch the company's new double fortified salt (DFS). The new salt packs both iodine as well as iron and will cost Rs 20 a kg, and is positioned as being effective in combating iron deficiency. A daily dose of 10 gm of this salt would give 50 per cent of the required dietary allowance (RDA) of iron. On a daily basis, the human body requires 15 mg of iron, while 10 gm of the salt (which is what average consumption is daily) gives 8.5 mg.

Other salt manufacturers such as Tamil Nadu Salt Corporation and Ankur Salt too, have DFS in their portfolio. The Tamil Nadu Salt Corporation has been producing DFS for distribution in mid-day meal school programmes and for the bottom of the pyramid consumers. But this is the first time that DFS is being introduced on a commercial national scale aimed at all retail and consumer segments.

The Tatas claim a 64 per cent market share in organised national branded salt segment.

chitra.n@thehindu.co.in

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