Market Reports

Salt Industry in India

1	Quick Facts: Salt Industry
2	Overview of Indian Salt Industry
3	India: State-wise Production of Salt
4	Government Initiatives
5	Megatrends in Salt Industry
6	Why Invest in India’s Salt Industry?
7	Our Team

Quick Facts: Salt Industry

India is the third largest salt-producing country in the world after China and the USA
India accounts for about 10–11% of global salt production
Gujarat, Tamil Nadu and Rajasthan are the leading salt-producing states in India, together contributing ~98% of the country’s total salt production
The salt industry provides livelihood to a large number of people. It is estimated that around 2-3 million people are directly or indirectly employed in salt production and related activities
The average annual demand of salt around the country is around 7 Mn tons for edible use and around 13 Mn tons for industrial use
India ranked first in total salt exports globally, with 14.4 million tons in 2023–2024
The estimated per-capita salt consumption in the country is around 14 kg, for both edible and industrial use
There is no basic customs duty on salt exports from India. The export of salt is generally free from export duties to encourage trade. Also, the basic customs duty on salt imported into India is zero
India exports salt to countries like China, Japan, Bangladesh, Indonesia, South Korea, Malaysia, Vietnam, Qatar and the U.A.E. etc.

Overview of Indian Salt Industry

The salt industry in India depends on several natural sources such as sea brine, lake brine, sub-soil brine and rock salt deposits. There are many types of salt produced in the country, including sea salt, lake salt, bamboo salt, fleur de Sel, Khar (alkaline salt), Sambhar salt, red salt, Epsom salt, mineral salt beds, black salt, rock salt and vegetable salt (sodium chloride).

In the years following independence, India relied on salt imports from the United Kingdom. Today, India is self-sufficient in salt production and also exports salt to various countries. Salt in India mainly comes from two sources, sea and sub-soil. Sea water is the main source, but in areas like Rajasthan, sub-soil sources are more important for salt production. Gujarat plays a leading role in producing salt from both sea and sub-soil sources.

~11,453 salt manufacturers in India are involved in producing common salt across about 7.47 lakh acres of land. Of these, an estimated 87.9% are small-scale producers with less than 10 acres each, 6.2% are medium-scale producers operating between 10 and 100 acres and 5.9% are large-scale producers with holdings of more than 100 acres.

India: State-wise Production of Salt

India’s average annual salt production stands at 31 Mn tons, with the highest-ever production recorded at 33.8 Mn tons in 2022–23.
The majority of salt production, around 98.8% comes from three surplus-producing states: Gujarat, Tamil Nadu and Rajasthan.
Gujarat leads with a contribution of 87.4%, followed by Rajasthan at 6.7% and Tamil Nadu at 4.7%. The remaining 1.2% of production is distributed across several other states and territories, including Andhra Pradesh, Maharashtra, Odisha, Karnataka, West Bengal, Goa, Himachal Pradesh and the Union Territory of Diu & Daman.
Prominent sea salt works along the coast of Gujarat (Jamnagar, Mithapur, Jhakhau, Chirai, Bhavnagar, Rajula, Dahej, Gandhidham, Kandla, Maliya, Lavanpur), Tamil Nadu (Tuticorin, Vedaranyam, Covelong), Andhra Pradesh (Chinnaganjam, Iskapalli, Krishnapatnam, Kakinada & Naupada), Maharashtra (Bhandup, Bhayandar, Palghar).
Prominent salt lakes include the Sambhar Lake (Rajasthan), which is one of the largest inland saline lakes in India.
Rock salt deposits are mainly found in Himachal Pradesh state (Mandi) and the production of rock salt is primarily done by government-regulated bodies.

Government Initiatives

National Salt Policy & Self-Sufficiency Focus

The Government of India has consistently aimed to make the country self-reliant in salt production since independence.
Policy emphasis on expanding production capacities in coastal states such as Gujarat, Tamil Nadu and Rajasthan.
Strategic push to reduce dependence on imports and establish India as a net exporter of salt.
Ongoing government support ensures that India remains among the top global salt producers.

Iodization & Public Health Programs

Implementation of the Universal Salt Iodization (USI) programme to eliminate iodine deficiency disorders.
Mandatory fortification of edible salt with iodine under the Food Safety and Standards Authority of India (FSSAI).
Continuous monitoring and awareness campaigns by the Ministry of Health and Family Welfare.
Partnerships with NGOs and state governments to ensure widespread distribution of iodized salt.

Export Promotion & Trade Facilitation

The Salt Commissioner’s Office actively facilitates export approvals and quality certifications.
Export incentives under schemes like RoDTEP (Remission of Duties and Taxes on Exported Products) for salt producers.
Development of port infrastructure in Gujarat and Tamil Nadu to support large-scale shipments.
Government-to-government trade agreements enabling access to high-demand markets such as China, Indonesia and the Middle East.

Infrastructure Development & Modernization Support

Investment in salt cluster development for small and medium salt producers.
Support for mechanization and solar evaporation technology adoption to enhance efficiency.
Introduction of low-interest loans and credit facilities through NABARD and state agencies.
Focus on training programs for workers to improve productivity and reduce occupational hazards.

Megatrends in Salt Industry

Rising Demand from Chemical & Industrial Applications

Over 50% of salt production in India is consumed by the chemical industry (chlor-alkali, soda ash, caustic soda).
Expanding demand for PVC, glass and detergents is driving industrial salt consumption.
Global supply chain shifts are boosting exports of industrial salt from India.
Growth of allied sectors (plastics, textiles, paper) creates stable long-term demand.

Rising Demand for Specialty & Value-Added Salts

Growing awareness of iodized salt for public health and nutrition.
Demand for specialty salts (low-sodium, Himalayan pink salt, black salt) in domestic and export markets.
Gourmet salts are increasingly used in the food and beverage industry to enhance flavour, boosting market growth.
E-commerce and specialty retail channels are improving accessibility, while innovative packaging and branding support expansion.

Technological Advancements & Process Modernization

Adoption of mechanized harvesting and solar evaporation techniques is increasing productivity.
Investments in brine management and crystallization technologies enhance yield and quality.
Digital solutions (GIS mapping, satellite monitoring) improve land use efficiency.
Process automation reduces dependence on manual labor and boosts consistency.

Sustainability & Environmental Regulations

The salt industry is under scrutiny for issues like saline pollution, groundwater depletion and land degradation.
Push for eco-friendly salt production (recycling brine, renewable energy use).
Rising compliance requirements under environmental laws and ESG frameworks.
Pressure on producers to align with global buyers’ sustainability expectations.

Why Invest in India’s Salt Industry?

Leading Industrial Salt Producer

India is one of the largest salt producers in the world, accounting for about 10-11% of global industrial salt production.
The country produces 31-33 million metric tons of industrial salt annually and is expected to reach around 40-42 Mn tons by the end of 2030 with a CAGR of 4.5%.

Export Dominance and Global Reach

India is ranked 1 in salt exports, with a record export of 14.4 Mn tons in 2023-24.
The country’s salt is highly sought after by key markets, including China (44-45% of total exports), Japan, South Korea, Bangladesh and several countries in Southeast Asia and the Middle East, demonstrating India’s strong export potential and market diversification.

Government Support and Duty-Free Trade

India benefits from a duty-free status on both salt imports and exports, promoting a competitive pricing environment.
Export incentives such as the Merchandise Exports from India Scheme (MEIS) further encourage exporters by offering financial benefits, leading to a 10-15% increase in exports.
The zero-customs duty policy for both imports and exports enhances India’s competitiveness globally.

Strategic Geographic Location

India’s geographical proximity to major industrial salt-consuming regions like China, Southeast Asia and the Middle East facilitates lower shipping costs and quicker delivery times.
Additionally, Gujarat’s well-developed ports are pivotal in handling large-scale industrial salt exports, providing an infrastructure advantage for seamless logistics and distribution.

Market Reports

Salt Industry in India

Quick Facts: Salt Industry

Overview of Indian Salt Industry

India: State-wise Production of Salt

Government Initiatives

Megatrends in Salt Industry

Why Invest in India’s Salt Industry?

Our Team

Meet Our Experts

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