This had led to rumours of shortage and skyrocketing of salt prices, up to Rs 60 a kg, in metropolitan markets, especially in the country's capital. Any such predicament is unlikely this year. Data from salt department says that the production of the commodity this year may exceed 140 lakh tonne. Gujarat production is expected to cross 90 lakh tonne and that in Tamil Nadu would beabove 25 lakh tonne.

In Tamil Nadu, the state-owned Salt Corporation also played a major role in the edible salt sector by producing 91,000 tonne last year. The public sector organisation Hindustan Salt Corporation produced about 2.80 lakh tonne, taking its output from the public sector at 3.70 lakh tonne. The TNSC is targeting a production of about two lakh tonnes in the current year.

Rajasthan is the third largest producer of salt in the country though it does not have a coastline. From salt rocks and brine wells the state produces about 12 lakh tonne of salt annually. In the east coast, Andhra Pradesh, Orissa and West Bengal also produce small quantities of salt.

Salt is the major raw material of the chloro alkali industries for the production of chlorine, caustic soda and soda ash. The industry consumed 58.73 lakh tonnes of salt in 1998-99, against 55.51 lakh in 1997. Of this chloro alkali industries used up 45.91 lakh tonne.

During 1997-98, 57.35 lakh tonne has been utilised as edible salt. In1998-99, it was 51.34 lakh tonnes. Of this 41.28 lakh tonne had been iodised in 1997-98 and 40.17 lakh tonne in 1998-99.

During 1997, 5.31 lakh tonne of salt had been exported to countries like Philippines, Nepal, Japan and Malaysia.

In 1998, 4.07 lakh tonne were exported to Nepal (1.09 lakh tonnes in 1997), Japan (0.68 lakh tonne), Indonesia (0.61 lakh tonne), Kenya (0.51 lakh tonne), Ethiopia (O.33 lakh tonne) and Malaysia (0.33 lakh tonne).

There is great demand for edible salt in the South-East Asian countries, according to V Palanichamy, chairman and managing director of TN Salt Corporation. Tuticorin is the port of exports.

Tamil Nau has embarked on a state-wide iodised/medicated/iron-fortified salt supply scheme through the public distribution system (PDS). Now it is selling such salt granules for Rs 2 a kg in select districts. Government order is awaited to extend the scheme to more districts.

TNSC is also planning to set up a plant to produce 36,000 tonne of free-flow iodised salt, now aforte of big companies like Tata and Hindustan Lever. The project report envisages investment of Rs 6 crore. The TN proposal is to distribute the salt for Rs 3 a kg through PDS. However, it is not planning to challenge the corporate giants in the open market as TNSC is planning a dual pricing scheme.

In Tamil Nadu there are over 10,000 acre of salt swamp area which, if developed properly, can yield at least 10 lakh tonnes of salt a year. According to Palanichamy, the forest department is preventing the development of such lands especially in Vedaranyam, where over 20,000 acre of government land had been surrendered by Wimco Ltd. The forest department wants to develop a bird sanctuary there. TNSC demand is only for 10,000 acre and it says the sanctuary can be developed in the remaining area.

Thermal power stations are another threat to salt pans in Tamil Nadu. The North Madras Thermal Power station has already taken over the Ennore-Manali salt pans. Production in the remaining areas also had to be stoppedowing to pollution of the land and water by fly ash.

The Central salt department here claims that it has not sanctioned land for the setting up of a mega thermal power plant in Cheyoor, near Chennai, close to salt pans. NTPC, the project promoter, had sought over 800 acre of salt producing areas for its project, besides the over 1,100 acre allotted to it by the state government.