Salt business in Gujarat: A sweet success for Dandi boys

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 June 20, 2024

AHMEDABAD: Eighty years ago, the British rulers in India used brutal force to quell the salt making movement in Gujarat’s Dandi village, led by a “naked fakir” called Mahatma Gandhi. Ironically, as snow storms lash the UK and much of Europe this winter, the same humble salt is coming to their rescue back home.

Heavy blizzards in Europe the last two weeks has forced local firms in the UK to look towards India for a way out. And not as a travel destination! What they are demanding is salt of the earth, literally. Not for consumption but to de-ice the snow and clear up the ways for movement—of traffic and people.

Empower Your Corporate Journey with Strategic Skill CoursesOffering CollegeCourseWebsiteIndian School of BusinessISB Chief Technology OfficerVisitIndian School of BusinessISB Leadership in AIVisitIIM LucknowIIML Chief Executive Officer ProgrammeVisitThis is the first time in history that European countries like France, Belgium and Netherlands have called on Indian salt manufacturers to import a large volume of sodium chloride. The roads, the rail-tracks and airports in most of Europe are blocked with ice and snow. And elementary science taught us that salt cuts ice— it’s good news for the salt manufacturers of India. The demands are humongous and India being the fourth-largest salt maker in the world is ready to feed it.

As per Indian Salt Manufacturers Association (ISMA), European firms have demanded for over four lakh tonne of salt to be used in key areas to make a way for travellers. “Europeans, who have been importing from China and Australia for years, have put forward a big order,” says Hiralal Parakh, president of ISMA and owner of Gandhidham-based Doongursee Salt Works. For Indian salt manufacturers this is the first time that salt is such sweet news.

India produces nearly 24 million tonne of raw salt annually, out of which 20 percent is exported mainly to Japan, China, US and Indonesia. As per ISMA, the almost Rs 1,000 crore salt industry is set to witness a huge order as the cold front continues in Europe. Major firms in Gujarat that contributes about 70 percent of the total salt production in India are readying their capacity to be shipped to European destinations. India’s biggest exporter Friends Salt Works and Allied Industry has received enquiries of large orders from European nations with a request to ship it on an urgent basis. “We have received urgent enquiries of various parties from France for salt and are negotiating in price structure,” confirms Ashok Singhvi, director of Friends Salt works.

Industry experts say that Europe had to rely on India for this season as China has witnessed untimely rains that resulted in a dip in salt production. China, the third largest salt producer in the global salt industry worth of $9.7 billion also consumed much of salt for its newly opened caustic soda plant.

Mukesh Agrawal who heads international business of Aastha Salt Industries is scouting for opportunities to export a lump-sum amount of salt to meet the European needs. “We will cash in on the opportunity as Indonesia has been complaining of short supply. It will enhance our reach to wider market,” says Agrawal. Out of India’s total exports of 3.25 million tonnes, Japan imports more than a fifth, followed by Vietnam and China. The salt production in India for this year has dipped down by 20 percent due to unseasonal rains that delayed the harvesting by one and a half month that was due to start from November.

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