According to a recent report, the salt industry is facing huge challenges in meeting the demand and in tackling the realisation crisis faced by salt farmers. About five lakh people work in the salt industry directly and indirectly.
What are the issues?
- At the moment, a farmer earns about Rs 250 to Rs 300 for a tonne of salt he or she produces.
- The prices keep fluctuating.
- Gujarat produces about 28.5 million tonnes of salt per year, which is more than 80% of the country’s total production.
- While farmers are facing low price as there is no minimum support price, workers are also in distress due to a lack of proper system for wages and social security.
- Even after 75 years of Independence, the laws that govern this industry are framed by the British.
Salt is mining activity
- 120 years ago, Britishers got salt from Mandi in Himachal Pradesh by mining. Therefore, the British put salt production as mining.
- Hardly 0.5% salt is produced by mining. 99.5% salt is produced either from the sea water or from the sub soil water and the entire process is done by seeding, cultivation and harvest.
- There is a demand to consider it as agriculture.
- The production units and farmers say that all the laws pertaining to the industries are applicable to salt production even though the production is done through simple solar evaporation as it is listed as mining industry.
Salt and law
- Salt is a Central subject listed as item No. 58 of the Union List of the 7th Schedule of the Constitution.
- The industries demand that there should be a nodal agency with common rules and regulations.
- Government of India has delicensed Salt Industry by deleting provisions relating to Salt in the Central Excise & Salt Act, 1944 vide Finance Bill of 1996-97.
Salt production in India
- Of India’s total salt production, nearly 10 million tonne is exported, 12.5 million tonne is consumed by industries and the remaining is used by retail customers.
- India is the third largest producer of salt in the world after the USA and China.
(Source: The Hindu)
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