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MARD and MOIT argue over salt imports
Trade bureaucrats have decided to grant a quota to import 170,000 tons of salt, turning a deaf ear to Agriculture Ministry protests that Vietnam every ton is a nail in the coffin of Vietnam’s sea salt producers.
Earlier this month the Ministry of Industry and Trade (MOIT) and the Agriculture Ministry (MARD) were sparring over sugar imports. This week it’s salt. The Dan Tri newswire reports.
In the past, Vietnam has often had to import salt, as much as half a million tons. From 2003-2007, Vietnam annually imported 200,000 tons of industrial salt. In 2008, Vietnam not only imported industrial salt, but, for the first time, salt for household use.
However, MOIT’s issuance of a permit to import salt in 2010 while the size of Vietnam’s domestic ‘salt crop’ remains unclear has been described as a ‘hasty decision’ by MARD.
Scientists calculate the individual consumption requirement at four or five kilograms of salt annually, which means that Vietnam needs 400,000 tons of salt for household use each year. Adding in industrial demand, the total needed is some one million tons.
MARD in 2009 counted 14,476 hectares of salt ponds in 120 seaside locations that in total employ about 250,000 workers. That’s a nearly 16 percent increase in capacity over 2008, when domestic sources provided 800,000 tons of salt.
Production was less in 2009; MARD attributes the five percent drop to ‘crop failure’ and to some discouraged workers giving up the job. However, because Vietnam imported more than 200,000 tons of salt already in 2009, MARD forecasts that Vietnam will not lack salt this year.
Since mid-2009, the price of salt has been falling dramatically. In the central region, the high quality kitchen salt is now selling at 500-700 dong per kilo, though it sold for 2000 dong per kilo at its peak. The price of industrial salt is hovering around 900-1000 dong per kilo.
Though domestic producers can provide enough salt, enterprises still prefer imports. It’s said that because the domestic production is carried out manually, the product is not as attractive, pure, clean or cheap as the industrially-produced imports. Further, salt’s world price has slid down to $30-40 per ton, or 800 dong per kilo delivered to Vietnamese ports.
The bottom line, and the reason for MARD’s concern, is that free imports of salt could mean the death of the domestic salt industry.
VietNamNet, Dan tri
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