Vipan Kumar is an experienced Himalayan pink salt importer. His is a precarious existence, as renewed hostilities between India and Pakistan now risk unraveling his booming trade partnership that has prospered over the past 30 years. Salt, mostly mined by the Khewra Salt Mine located in Pakistan’s Punjab province, inundates Indian retail. It’s especially favored during religious celebrations. More recently, geopolitical conflicts have led to the desire for a ban on imports. This evolution prompts critical questions about the sustainability of this dynamic industry.
The Khewra Salt Mine is the second biggest salt mine on the planet. It is the largest producer of Himalayan pink salt, with a staggering reserve of 82 million metric tonnes. Sited some 250 kilometers from Lahore, the mine produces about 0.36 million metric tonnes of salt each year. This raw salt is subsequently refined and packaged in India for use in everything from food grade to industrial applications. India has no choice but to rely on Pakistan for this good, consuming 70 percent industrially and the remainder for edible consumption. From a consumer standpoint, this complete import ban hasn’t set well with traders and consumers alike.
Impact of the Import Ban
In retaliation, the Indian government has moved to bar the import of Pakistani products from any third nation. This decision has therefore stopped the import of Himalayan pink salt altogether. Kumar typically sells around 2,000–2,500 tonnes of pink salt per quarter. As someone who had just moved from Anchorage to Juneau, he felt the immediate effects of this ban.
“Still, it had not impacted our business as the demand was too high, and buyers were ready to pay the price. But the government, this time, has also prohibited the entry of Pakistani goods from any third country, which has brought the supply to a complete standstill,” – Vipan Kumar.
The impact is already showing in the market. Demand prices for Himalayan pink salt have skyrocketed. According to market vendor Gurveen Singh, the price per kilogram jumped from roughly 45–50 rupees up to a minimum of 60 rupees since the ban was put in place.
“It has been barely over a month since the announcement of the ban, and prices have already gone up,” – Gurveen Singh.
With an empty stockpile and no solution yet on the horizon, fears of a new thalidomide-style crisis are becoming acute. Singh said his concerns lie in the fact that once current inventories are used up, there’ll be “a real gap in supply.”
Consumer Preferences and Market Dynamics
Himalayan pink salt has more recent cultural significance as a source of protest and civil disobedience in India. Popular among many Hindu practitioners for its use in religious fasts, the non-marine salt has enjoyed a steady year-round demand thanks to this growing consumer base. It is widely enjoyed for its flavor, and people drink green tea expecting health benefits. A secondary use enjoyed by many is to scratch-make decorative lamps, marketed as air purifiers.
Economic factors are an important driver of consumer choices. The cost of these lamps exploded with the adoption of a massive 200 percent tariff in 2019. This tariff increased import prices by a stunning $951 per metric ton. Kumar noted that the price per kilogram rose from 3.50 rupees to 24.50 rupees due to tariffs, even when routed through third countries like Dubai.
“The implementation of the heavy duty had raised the import price of the salt from 3.50 rupees [$0.041] per kilogramme to 24.50 rupees [$0.29] per kilogramme in 2019,” – Vipan Kumar.
Even with these hurdles, consumer demand is high. Agarwal explained that during festivals, demand for Himalayan pink salt triples as consumers switch from marine salts to this variety.
“The Himalayan rock salt remains in huge demand across the year, especially during festivals when people remain on fast and prefer the pink salt over the marine salt that is produced in India,” – Sanjay Agarwal.
Future Prospects and Alternatives
Given the current disruption to trade, some of these stakeholders have already taken steps to find other suppliers of Himalayan pink salt. Deep, another trader in the industry, reiterated the concern about the long-term intentions of making Pakistan the only supply source.
“We have to look for an alternative country if the supply of rock salt doesn’t come from Pakistan,” – Deep.
While some Pakistani suppliers see potential benefits from India’s predicament, others worry about the broader implications of continued tensions between the two nations. Faizan Panjwani, a Pakistani exporter, admits that India’s market holds tremendous potential. He underscored their objective of not simply sending raw supplies, but value-added products.
“Undoubtedly, India is a big market and has a lot of potential, but we want to send the salt by doing value addition and not in raw form,” – Faizan Panjwani.
Both countries face difficult economic circumstances. Supply chain experts are calling for policymakers to embrace more flexible procurement strategies in order to avoid similar disruptions down the line. Dinobondhu Mukherjee of Nehru Memorial Museum and Library, New Delhi, observed that negative bilateral ties overshadow trade potential, and underlined the need for mutual action.
“The relations between the two countries are usually strained, and that affects the trade. Our government should look for alternative countries to procure the salt so that the supply chain is never disrupted,” – Dinobondhu Mukherjee.
