Salt production in 1997 peaked 142 lakh tonnes as against the domestic demand of about 120 lakh tonnes, leaving a surplus of over 20 lakh tonnes. Against this surplus, exports were a mere 4.12 lakh tonnes.

While there are no direct curbs on salt exports, absence of infrastructural facilities has throttled the prospects of exports, salt manufacturers opine. The main problem exporters face are at sea ports. The pace of loading salt is slow which results in high demmurage charges to exporters, besides the long waiting period for salt vessels to get berth. The problem is more prominent in Kandla port.

The surplus stocks are therefore offloaded in the domestic markets at lower prices. The trend is an ongoing affair year after year.

According to PM Kavadia, president of Indian Salt Manufacturers' Association (ISMA), salt production in the country is likely to cross 160 lakh tonnes in the near future and the demand is likely to stagnate at 120 lakh tonnes as its bulk user, the caustic soda industry, is not expected to expand in a big way at least in the next few years.

Further the cost of production is steadily rising due to inflationary impact on all components of cost. Salt producers have suffered on two counts- depressed selling prices and the rising input costs. The cumulative effect has led to a significant drop in profit margins as compared with the earlier years.

Despite several representations made to the authorities, very little is done to boost salt exports, Kavadia said. It's a well known fact that in order to achieve the targets of higher exports, one has to competitively price the product in foreign markets and infrastructural bottlenecks only add to the cost of salt, making pricing highly uncompetitive, say exporters.

The country's major competitors, Mexico and Australia, enjoy all the infrastructural facilities thus making them price their product comptetively.If the government accepts the industry's suggestions the country could load salt containers at the rate of 8,000-10,000 tonnes per day against the present loading capacity of 3,500-4,500 tonnes.

All that is needed to encourage salt exports is to clear the fleet of ships that cause traffic bottlenecks at various ports, especially Kandla where bulk of the salt manufactured are exported. ISMA has demanded that the authorities give priority in allotting berths to vessels meant for salt cargo.

Ships have to wait outside the ports for several days to get a berth and if this problem is solved, salt exporters could load their consignments on time and avoid demurrage levies of ports that eat into their profits.

Besides, Kandla port must upgrade the capacities of its cranes to 5-10 tonnes from the present three tonnes and providing mechanical belt conveyors.The ports at Jamnagar and Navlakhi also need upgradation. Since Gujarat produces country's 70 per cent of salt, substantial exports are likely to take place from the state and hence these ports need to be upgraded on a war footing.

Moreover, for speedy and timely internal movement of salt wagon quota for the zonal scheme should be allotted to various states in proportion to their production and the category "B" priority should be restricted to salt manufacturers.