Salt industry demands swift release of cargo

Imported potassium iodate held at port for past 15 days

KARACHI:

Traders and stakeholders of the salt industry have drawn government’s attention towards the imported potassium iodate cargo held at Karachi Port for the past 15 days, resulting in significant demurrages on importers.

Expressing concern over the scarcity of an essential ingredient needed to produce iodised salt, they said that the industry had a low iodised salt stock, which would meet demand for only a week or two.

“We express our concern over a pressing matter that the salt industry is running out of its key ingredient to process iodised salt and that the stock can last a week or two at most, while the freshly imported cargo of potassium iodate is being held at Karachi Port for the past 15 days, incurring heavy demurrage on a daily basis,” lamented Ismail Suttar, Chairman Salt Manufacturers Association of Pakistan (SMAP).

“Pakistan’s per capita salt consumption is 3 kg per year while the cost of obtaining potassium iodate each year is $300,000, which is negligible while considering the nutrient’s positive effects on health, and it should not be compromised by holding back the imported cargo,” Suttar told The Express Tribune.

Meanwhile, the association reached out to Finance Minister Ishaq Dar, seeking immediate attention to the iodised salt programme.

“Pakistan’s iodised salt programme has been recognised as one of the success stories that achieved almost 80% iodisation compared to 7% earlier in a short span of time,” he said.

Suttar emphasised that the household consumption of iodised salt in Pakistan was over 70% and if it was not produced, people would be deprived of a basic nutrient that would pose more health challenges in the coming years.

“It is alarming that containers are not being released despite having approval of the State Bank of Pakistan (SBP),” maintained Farazur Rehman, President Korangi Association of Trade and Industry (KATI), while talking to The Express Tribune.

Although the SBP had given approval for the import of the commodity under Chapters 84, 85 and 87 starting January 2, “it has not yet happened”, which added to complications, he claimed.

“The issue needs to be resolved immediately. If businessmen are fined $15,000 for a container worth only $10,000, their businesses will fail, which will intensify inflationary pressure, making basic and essential commodities unaffordable for the consumers,” Rehman said.

The situation aggravated when the government barred traders, particularly the furniture manufacturers, from using the delayed payment documentation for the release of containers, he mentioned. “Traders could not afford to pay fines equal to twice the value of containers.”

If abandoned at port, the goods would lose quality, the KATI president said and urged the government to take immediate action.

Published in The Express Tribune, January 17^th, 2023.

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