Salt exports set to surge as Bangladesh seeks alternatives

Favourable trade policies, disrupted Indian supply present golden opportunity

KARACHI:

Speculation among salt traders about a potential surge in salt exports to Bangladesh has intensified recently, driven by political developments in Bangladesh and environmental factors affecting salt production in India, the largest supplier to the Bangladeshi market.

Industry insiders report a noticeable increase in quotation requests from Bangladeshi traders, largely due to Bangladesh's recent relaxation of trade policies. This policy shift is expected to facilitate smoother and more favourable trade terms for salt (sodium chloride) imports.

"The relaxed trade policy has certainly opened new doors for us," said Bangladeshi traders Onik Chowdhury and Mahmudur Rashid while talking to The Express Tribune. "We're seeing a significant rise in demand for salt, and it's becoming clear that the policy shift is playing a crucial role in this trend."

Adding to this development is the recent monsoon spell in India, which has negatively impacted salt production there. The heavy rains have created adverse conditions for salt harvesting, leaving Indian exporters struggling to meet the increasing demand from Bangladesh.

Consequently, Bangladeshi traders are turning to alternative sources, including Pakistani salt, to bridge the supply gap. Pakistani salt producers are poised to benefit from this shift, with many already reporting a spike in orders from across the border. "The timing of this change is critical for us," noted Pakistani salt exporter Ali Haider. "With the Indian supply being disrupted, we're in a strong position to meet the growing needs of the Bangladeshi market."

This convergence of factors—political shifts in Bangladesh, favourable trade policies, and production issues in India—is expected to drive a significant rise in salt exports to Bangladesh in the coming months. Stakeholders across the salt trade industry will be closely monitoring these trends to adapt to the evolving market dynamics and capitalise on emerging opportunities.

Quality and pricing urged

Data from Pakistan Revenue Automation Limited (PRAL) showed that Pakistan exported salt worth $0.022 million from September to December 2023. However, the data indicates zero exports from January 2024 to July 2024.

In light of increasing demand from Bangladesh, Ismail Suttar, CEO of HubSalt and President of the Lasbela Chamber of Commerce and Industry, emphasised the need for Pakistan to uphold high standards of quality and offer competitive pricing. Speaking to The Express Tribune, Suttar stressed that maintaining these criteria is crucial for Pakistan to secure and retain orders from Bangladeshi traders.

"We have been exporting technical grades and pharmaceutical grades of salt to Bangladesh for some time. But when it comes to business, it's all about economic sense. If Pakistani salt is cheaper and better in quality, Bangladesh will likely buy more from us. However, if our salt doesn't meet quality or price expectations, they will look elsewhere, regardless of the relationship between the two countries," he explained.

Suttar noted that while the current surge in demand might be due to excessive monsoon rains in India, which have badly affected supply, such phenomena are typically temporary.

"While the rise in demand presents a significant opportunity, it is essential that we meet the expectations for quality and price," Suttar added. "Bangladeshi traders are looking for reliable sources that can consistently provide both high-quality salt and reasonable pricing. To capitalise on this opportunity, we must ensure that our products meet these standards."