India's Salt Economy
Who Earns From Salt?
How the price of salt rises from pan to packet, why salt workers earn little while brands and retailers earn more, and the role of transport costs.
Salt’s price rises along the chain.
At the pan
Salt workers sell raw salt at very low prices per tonne.
Along the chain
- Traders buy and transport salt.
- Refiners wash, iodise and pack it.
- Brands market it.
- Retailers sell it.
Transport
Salt is heavy and cheap, so transport is a big share of its cost; railways carry much salt.
Who earns more
Brands and packers earn higher margins than salt workers.
Improving earnings
- Workers’ cooperatives.
- Better pricing information.
- Solar pumps to cut costs.
The price gap
Raw salt sold for very little at the pan ends up in a branded packet selling for many times more.
Thinking salt workers get most of the price
Traders, brands and transport take most.
Key takeaways
- Salt's price rises along the chain.
- Workers earn little.
- Transport is a big cost.
- Cooperatives can help workers.
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