Salt production

Govt plans imports as season begins, farmers worry over prices

The salt harvesting season runs from November to May each year, with production already beginning this November. But farmers in Kutubdia say they remain anxious regarding prices.

Most of Bangladesh’s salt demand is met through domestic production. Several hundred thousand tons of salt are produced every year in Cox’s Bazar and Chattogram, making them central to the country’s salt supply. The new salt harvesting season began this month in Kutubdia, Cox’s Bazar. But, much like in previous years, salt farmers remain worried about prices. Even with more than 400,000 tons of unsold salt still sitting in fields from the last season, the government is planning to import an additional 150,000 tons. As a result, many farmers, fearing unfair prices, are hesitant to return to the fields.

According to the Bangladesh Small and Cottage Industries Corporation (BSCIC), around 2.25 million tons of salt were produced last season against a demand of 2.61 million tons. And back in the 2023 season, production was around 2.43 million tons. Although there was a shortfall to meet demand, a total of 420,203 tons of salt were not sold, even six months after the previous season ended — still sitting in the fields.

At present, the price of salt is BDT 240 per maund (1 maund = 37.32 kilograms). Salt farming takes place on 59,999 acres in Cox’s Bazar’s seven Upazilas and 10,089 acres in Banshkhali and Patiya of Chattogram. A total of 41,355 farmers are directly involved in the cultivation.

Eighty-seven percent of the country’s total salt output comes from the seven Upazilas of Cox’s Bazar. The rest is produced along the coastal belts of Banshkhali and Patiya. The salt harvesting season runs from November to May each year, with production already beginning this November. But farmers in Kutubdia say they remain anxious regarding prices.

Mohammad Kashem, a salt farmer from Lemsikhali in Kutubdia, has been producing salt for more than a decade. He cultivates around 2.44 bighas (1 Bigha = 14,400 Square Feet) of land, combining his own and leased plots. He has started production again in the same area this year. But the cost of leasing land has risen, and daily wages for each worker now exceed BDT 1,000.

“I’ve been farming salt for over twelve years,” Kashem said. “Each year, the price per maund usually ranges between BDT 180 and 250. During the peak season, it may rise to BDT 350 or 400. But if there’s oversupply, most farmers don’t get that price. I’ve started work again this year. But I’m worried about prices. I hear more than 400,000 tons of salt are still sitting unsold in the fields. Those will be sold first, then traders will buy the new stock. With land rent and labor costs rising, if I face losses again this year, I’ll have to give up salt farming.”

Salt production has begun in Kutubdia, but neighboring Moheshkhali Upazila has yet to fully start the season. Nurul Islam, a salt farmer in Moheshkhali, is still undecided about whether to begin harvesting. Speaking to Bonik Barta, he shared, “Every year we produce salt at a loss. Everyone in the country needs salt. But even when prices are high in shops, farmers don’t get fair value. When the season starts, traders form syndicates midseason to lower prices. Salt remains in the fields, and the government buys sodium sulfate for industry. If the country processed its own salt, producing industrial salt would be possible. Yet imports are made primarily to benefit industrial owners and middlemen without thinking about farmers.”

He added, “Because of the import decision, local salt prices have fallen sharply. Now one maund sells for BDT 200 to 250, while production costs are around BDT 300. Thousands of farmers are facing losses.”

The government, however, has said that only the salt already stored in fields over the next two months will be used. To prevent artificial shortages, it plans to import 150,000 tons of salt. Sarwar Hossain, Deputy General Manager and Head of the Salt Cell at BSCIC, explained, “Our current stock will last until December. To prevent any shortage after that, we have planned to import 150,000 tons of salt. The proposal has been sent to the Ministry of Industries. Once approved, unrefined salt will be purchased from India and Pakistan through the Ministry of Commerce.”

He added, “Imported salt is usually bought by private companies because disodium sulfate is used in industries. If production is delayed for any reason, an artificial shortage could occur. That’s why we have planned the imports. There’s no need to buy from abroad if domestic production is sufficient. While domestic salt costs BDT 5 per kilogram, imported salt costs BDT 13. But if a shortage arises, purchases will be made based on industrial demand.”

Farmers and traders, however, argue that the government chooses imports each year to benefit industries and companies, depriving local farmers of fair prices. Irrational import approvals, even when domestic production is sufficient, harm local industry. They say the government needs to provide effective incentives to maintain production. Even though some farmers receive BDT 100,000 in subsidies annually, the number is limited. Most farmers have to invest their own money for land, irrigation, and labor, increasing production costs. They are calling for the import plan to be canceled and for stronger local salt procurement and market management.

Zafor Iqbal Bhuian, Deputy General Manager of the Salt Industry’s Development Office (SIDO) in Cox’s Bazar, said, “Because salt prices are low, many farmers have not yet gone into the fields. To stabilize prices, the government plans to purchase salt this season. We have plans for warehouse storage. The government will buy salt directly from farmers and store it. After August 5 last year, economic and political instability caused many factories to close, keeping prices high. We are hopeful that prices will stabilize this new season.”

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