Salt price soars during Eid

Ismail Hossain Salt price soared at least by Tk 150 to 200 in per 70 kg sack over the last one week as a vast amount of salt was consumed by tanners for rawhide preservation during Eid-ul-Azha in the face of poor supply of the item. Tanners and seasonal rawhide traders alleged that a salt traders' syndicate has been hiking the salt price since last week that has subsequently caused financial losses to the tanners this year. Salt for hide processing, well-known as black salt, is a must for rawhide, skin and cow bone preservation. Meanwhile, salt traders claimed that they did not increase salt price during the Eid. Instead, they blamed poor salt production this year for the price hike. "A 70 kg sack of salt was being sold at Tk 400-420 just a week ago. Now such a sack is being sold at Tk 550-650," Md Mahbubur Rahman (Panna), proprietor of Ms Pubali Tanners of Hazaribagh told the FE. Pubali Tanners is one of the leading tanneries in the country which purchases some 150,000 pieces of rawhide and skin during Eid-ul-Azha. Mahbubur Rahman said at least 20 kg salt is needed for the preservation of a big size cowhide while 5-15 kg salt is needed for goat skin and small to medium size cowhide preservation process. "So, this extra cost would be added to the hide price this year," he said. Bangladesh Industrial Salt Manufacturers Association sources said this year salt production saw massive deficit. They said the country has a demand of 1.6 million tonnes of salt a year. But this year the salt production was 1.2 million tonnes. Babul Ahmed, a salt trader of Narayanganj, said he did not see such salt price hike in last 20 years during Eid-ul-Azha season. Every year the salt price goes up during Eid-ul-Azha. But it never exceeds Tk 50 per sack during the season, he said. He blamed less import of salt this year for the price hike. The government fixed the maximum price of raw salt at Tk 4.0 per kg for millers in a bid to protect interests of the country's thousands of growers in April this year. The government has also been discouraging import of salt. Harun Chowdhury, former president of Bangladesh Tanners Association, told the FE that 40 per cent of country's total salt is needed for hide preservation. He said the high price of salt this year would have an impact on the leather price consequently while the country's leather export has been falling sharply due to many reasons including Euro Zone crisis. He said middlemen and seasonal rawhide traders have suffered and would be suffering major financial losses this year as they have already purchased hides at higher prices. The high price of salt is a new addition to their miseries. Without having any policy, the country's salt sector remained one of the most neglected sectors over the years since independence. Finally, the government approved the draft National Salt Policy, 2011 to protect the interests of all stakeholders including the farmers in March this year. In the salt policy, it was said that if import of salt during surplus production continues, tariff and non-tariff barriers will be imposed to prevent such import for the sake of the local industry. Under the policy, steps will be taken to augment salt production by increasing salt-growing land and farmers will be encouraged to produce white salt through BSCIC-invented polythene method. The government however will facilitate the import of industrial salt for preparing chemical products under the policy. Nearly half a million people are engaged in the salt industry directly and indirectly, sources said. A close source to industry told the FE, preferring anonymity, that an 'evil axis' is involved for salt price hike in a bid to push Indian salt into the country. India's salt is cheaper than that of Bangladesh as India produces salt on government land. Bangladeshi salt farmers have to pay rent for the salt production.