Salt cultivation costs Tk 15 per Kg, growers get only Tk 5.5
Salt farmers from Cox's Bazar have expressed deep anguish over the exploitation they face at the hands of millers, who are allegedly undermining the domestic salt industry through unfair pricing practices.
At a press conference held on Thursday (February 20) at the National Press Club in Dhaka, farmers revealed that while their production cost per kilogram of salt stands at approximately Tk 15, marginal farmers are being forced to sell their produce for as little as Tk 5.5 per kg, leaving them financially devastated.
The conference was organised by the Cox's Bazar Laban Chashi O Byabasayi Sangram Parishad to highlight the plight of salt growers and urge authorities to intervene.
Its president Mohammad Jamil Ibrahim read out a detailed statement emphasising the need to protect the domestic salt industry and halt unnecessary imports disguised as "industrial salt."
Backbone of Bangladesh’s salt industry
Cox's Bazar and Chattogram districts serve as the primary hubs for domestic salt production in Bangladesh, with around 95 per cent of the nation’s salt originating from areas such as Teknaf, Cox's Bazar Sadar, Eidagaon, Maheshkhali, Kutubdia, Pekua, and Chakaria upazilas in Cox's Bazar.
The remaining 5 per cent is produced in Banshkhali upazila of Chittagong. Favourable natural conditions during the last season enabled domestic production to meet national demand, with surplus stocks exceeding 2,22,000 tonnes compared to the previous fiscal year.
In the current season, salt cultivation continues to thrive, covering roughly 65,000 acresof land and involving about 65,000 farmersFor Cox's Bazar, where 60 per cent of the populationdepends on salt trading for livelihoods, this sector holds immense significance.
Record production amidst price manipulation
According to data provided by the Bangladesh Small and Cottage Industries Corporation (BSCIC):
- In the 2022-23 season, Bangladesh produced 22 lakh 32 thousand 890 tonnes of salt — a record high in 62 years.
- In the 2023-24 season, the country broke another record, producing 24 lakh 36 thousand 890 tonnes
- For the 2024-25 fiscal year, the estimated demand is 26 lakh 10 thousand tonnes, a target farmers aim to achieve despite mounting challenges.
Despite these achievements, farmers find themselves trapped in an exploitative cycle orchestrated by millers and refiners. Prices offered for salt have plummeted dramatically since the start of the season, dropping from Tk 1,400 per sack (80 kg) to Tk 640 per sack, translating to just Tk 8 per kg—far below the actual production cost. This price manipulation has left farmers disheartened and threatens to disrupt the domestic salt industry.
Exploitation in the market
While farmers struggle to survive, packaged salt from major companies like Molla, ACI, Fresh, City Group, SA, Confidence, and others remains priced between Tk 40-45 per kg in retail markets. The stark disparity between producer prices and market rates highlights the monopolistic behaviour of millers, who reportedly formed a syndicate to suppress local producers.
Farmers accused the syndicate of lobbying government ministries and organisations under the guise of importing "industrial salt," seeking approval for Letters of Credit (LC) to bring in foreign supplies.
If successful, this move could devastate Bangladesh's only self-reliant salt industry, forcing genuine farmers out of business and driving up consumer costs.
Call for government intervention
Addressing the interim government, the farmers appealed to Chief Adviser Dr Muhammad Yunus and relevant ministries to act swiftly to save the domestic salt industry. They stressed the importance of ensuring fair prices for locally produced salt and preventing unjust imports.
Mohammad Jamil Ibrahim said, "We have come here with heavy hearts to draw attention to this crisis. Even though we aim to break records in salt production this season, the mill owners' syndicate is waging a psychological war against us, reducing our morale and sabotaging production."
Their demands include:
1. Setting a minimum purchase price for salt to ensure farmers receive adequate compensation.
2. Stopping all unauthorized LC approvals for salt imports.
3. Conducting thorough investigations into allegations of price manipulation and monopoly formation by mill owners.
The farmers warned that if no action is taken, the destruction of Bangladesh's domestic salt industry is inevitable. This would not only harm farmers but also increase dependency on imported salt, leading to higher prices for consumers. Currently, due to low field-level prices, many farmers are abandoning cultivation, creating a potential shortage in the near future.
Attendees at the press conference included numerous salt farmers from Cox's Bazar, united in their resolve to safeguard their livelihoods and the sustainability of the industry. Their voices echo the urgent need for systemic reforms to support grassroots producers and maintain food security for the nation.
As Bangladesh grapples with post-uprising economic adjustments, protecting vital industries like salt farming becomes imperative. The interim government must prioritise equitable policies to address this pressing issue and prevent further exploitation of marginalised communities, said the farmers.
