Manufacturers seek to raise salt price

Major salt manufacturers have sought to raise the price of salt even as the country witnessed record production of the kitchen item.
They claimed that providing edible vacuum salt to customers has become challenging, as they are facing a loss of Tk 5 per kg of salt.
Sources said five salt brands have recently approached the industries ministry, requesting a reasonable increase in the price of edible salt. Subsequently, the industries ministry forwarded the matter to the commerce ministry, urging them to take appropriate actions in response to the companies' proposal.
"We have received a proposal regarding the review of the price of salt from the industries ministry," said a commerce ministry official.
On October 31, 2022, the Bangladesh Trade and Tariff Commission (BTTC) fixed the price of salt at Tk 42 per kg.
The salt companies, in a letter to the industries ministry, said, "We, the vacuum salt manufacturing units (ACI Salt Limited, Molla Salt Triple Refinery Industry Limited, Confidence Salt Limited, Meghna Group of Industries, and City Group), produce both edible and industrial salt."
After the price fixation by the BTTC, inflation gradually increased, surpassing 10 per cent in April 2023, due to the rise in prices of fuel oil and essential commodities in the global market, they said.
"Amid the existing adverse situation, we are continuing production and incurring substantial losses," the salt companies claimed.
At the field level, the average price of an 80 kg bag of salt is Tk 1,070, with a 50 per cent salt processing loss, they said.
"Moreover, the cost of electricity during off-peak hours has risen to Tk 8.91 per unit from Tk 7.10 in the previous year, and during peak hours, it increased to Tk 12.91 per unit from Tk 10.69 in the previous year, resulting in a 16 per cent increase in production costs."
The cost of gas has also surged to Tk 30 per unit from Tk 14 in the previous year, raising the production cost by 115 per cent, they added.
"The factory overhead cost has risen by around Tk 3-4 per kg, and there is a regular need for marketing costs."
"The delivery cost of the product has increased by approximately 12.71 per cent due to a 37 per cent increase in fuel prices, compared to the previous year."
Taking all these costs into account, the production cost per kg of salt stands at Tk 42, resulting in a loss of Tk 5.0 per kg of salt, the salt companies said.
Currently, edible salt are being sold at Tk 38-40 per kg in the city market, according to the TCB.
Sources said the surge in salt production this year was possible due to several special initiatives taken by the government.
The number of salt producers and salt pans has increased this season compared to the previous year, according to the Bangladesh Small and Cottage Industries Corporation (BSCIC).
This season, the country witnessed a record 1.84 million tonnes of crude salt production, the highest in 62 years. This figure is 7,000 tonnes higher than the previous season.
The domestic annual demand for salt stands at around 1.8 million tonnes.
The annual demand for salt increases by 10 per cent in line with the growing population, said a BSCIC official.

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