Tuticorin salt MSMEs running dry, 25 per cent drop in annual sales: ICCI

New Delhi, Oct 20 (KNN) The salt industry in the Tuticorin region of Tamil Nadu comprising of primarily the Micro, Small and Medium Enterprises are in a bad state resulting in a dip in sales by over 20-25 per cent, Indian Chamber of Commerce and Industry (ICCI) informed.

Talking to KNN, Dharmaraj, Secretary of the Indian Chamber of Commerce and Industry (ICCI) Tuticorin informed that the region has over 14,000 acres of land with the MSME units that makes salt.

But with no assistance from the government, the sector is suffering badly.

Dharmaraj said that the main competition the region faces is from the state of Gujarat. If one was to look at the subsidies and assistance given by the state government in Gujarat to the sector, it would itself show as to why is Tuticorin industry not able to do well.

He informed that the salt MSMEs in Tuticorin aren’t given any incentive be it on land, water or electricity, whereas the Gujarat state government offers huge incentives on the lease.

Citing comparison, he lamented that the salt industry in Gujarat isn’t depended on the bore well water like the Tuticorin industry that adds to the gap.

Also the salt department operated by the Ministry of Commerce and Industry have  no new deputations on the different posts of the department, therefore the government office that is supposed to assist the sector isn’t functioning properly either, he informed.

Dharmaraj said that despite several representations made by his organization to the state as well as central government, there is no positive response so far.

The MSMEs that make salt in Tuticorin involves over 30,000 locals and offers them employment, with the sector suffering badly, there is likely to be a negative ripple effect on the entire economy of the state, he added. (KNN/ DA)