Government rubs salt in old wounds

The government’s argument that the Mumbaikar’s enhanced purchasing power automatically makes consumers opt for branded varieties and thus closes the market for cheap salt, is a contradiction in terms as the question of choice does not arise.

It is precisely this attitude which has allowedbranded varieties manufactured by private firms a monopoly of 80 per cent in the Mumbai market, they point out.

The only salt available in Mumbai is the branded variety, which costs Rs 7 whereas iodised, inexpensive salt, sold elsewhere in the state and country, costs as little as Rs 1.50 a kg to a maximum Rs 3.

“Getting the cheap variety of iodised salt is very difficult. Once when we needed it for examination purposes, we had to go beyond Bhayendar to procure it,” admits an official in the Salt Department office in Mumbai.

Deputy Salt Superintendent for the Western Region, M A Ansari, claims this kind of salt is not easily available as Mumbaikars don’t want cheap iodised salt. Brands like Tata Salt and Captain Cook corner a meagre 12 per cent of the market in the country and it is only in a metropolis like Mumbai that their sales zoom. “In the rest of Maharashtra, you can easily avail of the Rs 2 iodised salt,” he says. The inexpensive variety can and will be made available if there is a marketfor it, he underscores, elucidating: “In Gandhidham, such salt costs 75 paise per kilo. If there is a demand for it, it can be brought to Mumbai and be sold at Rs 2 per kilo… but there are no buyers,” Ansari underscores. He says people in Mumbai can afford to spend Rs 5 extra per kg and are hence not interested in purchasing cheap salt.However, Haribaksh Gadodia, spearheading the Namak Satyagrah Movement, does not buy the argument. “A major part of Mumbai’s population belongs to the middle class or lower middle class. If they can save a few rupees, they would definitely not buy the Tatas and the Captain Cooks,” he argues. Says B C Bagade of the Maharashtra Sarvodaya Mandal, “Ideally, the government should provide the consumer with non-iodised salt, cheap iodised salt and branded iodised salt and then allow the consumer to buy what he wants according to his needs.”

Gadodia says iodising cheap salt is both inexpensive and simple. Hence, it is not a deterrent for small producers who could treat it thusand sell it in the open market – if only there is a demand. The demand would definitely manifest itself if private firms did not have such a monopoly, he underscores.

“The Salt Department notification says the iodine per kg of salt should not cost more than 10 paise. Taking into account the profit margins of the sellers and the cost of salt, the sale price should not be over Rs 2,” Gadodia explains.

Moreover, the government also provides the machinery to add iodine to salt, free. “It is only the machines bought by the big companies to make salt free-flowing that cost crores of rupees, which they try to recover from the consumer, thus hiking the price,” Gadodia says. Of the over 4 lakh tonnes consumed in Maharashtra per annum, only 2 lakh tonnes are produced in the state. The other 2 lakh tonnes are imported from Gujarat. The 10-15 per cent of Mumbai’s market not covered by branded varieties comes from street hawkers, who sell the non-iodised variety.