Ahmedabad: Deendayal Port, formerly known as Kandla Port, has reported a substantial 66% increase in salt exports during the first quarter of the fiscal year 2024-25 compared to the corresponding period last year.
This surge in exports has been primarily driven by the government’s policy amendment allowing the extraction of natural salt deposits near Khavda in the Greater Rann of Kutch, a move that has stirred both support and opposition within the industry. The Deendayal Port Authority (DPA) disclosed that it facilitated the export of 39.39 lakh metric tonnes of salt in the initial quarter of the current fiscal year, underscoring its pivotal role in Gujarat’s salt export landscape, commanding over 80% of the state’s total exports. Bharat Raval, President of the Indian Salt Manufacturers Association (ISMA), explained, “Previously, the extraction of natural salt deposits in the Greater Rann of Kutch was restricted. The government’s post-Covid policy shift opened avenues for exporting this salt, coinciding with reduced production in China, which heightened international demand.”
The strategic location of Khavda near the port has proved advantageous, significantly reducing logistical costs compared to traditional inland production methods. This has positioned the port competitively in global salt markets, with extraction costs as low as Rs 25 per tonne, compared to Rs 225 per tonne for conventionally produced salt. Despite the economic benefits, there has been opposition from traditional salt manufacturers. They argue that allowing the extraction of natural salt, which they deem as a mining activity, should entail regulatory oversight and fair-market auctioning of leases, akin to other mineral resources.
DPA’s newly appointed chairman, S K Singh, acknowledged the record-breaking achievement in June, with 16.63 lakh metric tonnes exported, surpassing previous monthly highs. Singh attributed this success to meticulous planning and operational efficiency, aiming to elevate Deendayal Port as a preferred hub for global shipping lines. The surge in salt exports not only underscores Deendayal Port’s economic significance but also highlights ongoing debates over resource utilization policies and their impacts on traditional industries versus economic expansion and global competitiveness. As exports continue to grow, balancing these interests will remain crucial for sustained growth and regulatory clarity in the salt industry.
