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,” said Tuticorin Small Scale Salt Manufacturers' Association Secretary, Mr A.R.A.S. Dhanabalan.
Though 40 lakh tonnes of salt was exported from the country 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.
The Gandhi Irwin Salt Manufacturers Association President, Mr M.S.A. Peter Jebaraj, said that he expects prices to fall further, going by the current trend. Already the price/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, Mr Jebaraj said production would commence according to schedule to ensure the workforce was not impacted.