Salt industry system reform implementation schemes by 31 provinces and cities have all been submitted as of December 6, and approval work is expected to be completed before December 20, Shanghai Securities News quoted Zhao Chenxin, a spokesman for the National Development and Reform Commission (NDRC) as saying on December 13…Full Article: Xinhua Finance Dec 2016

Key Point

  • According to China’s Ministry of Industry and Information Technology (MIIT), China will allow designated food salt producers to sell directly to consumers (B2C) and compete with each other on the open market. Previously, food salt producers were only allowed to sell to wholesalers (B2B).

ChinaAg Comments

  • In October 2016, China’s National Development and Reform Commission (NDRC) announced it would remove state price controls for salt starting in 2017. At the time, China reportedly had 300 registered salt producers and 4,000 distributors.
  • In May 2016, China’s State Council announced they would relinquish its control over salt, allowing salt producers to determine output, prices, and sales. Traditionally, salt producers could only sell to state distributors. However, China would not permit the establishment of new salt producers/wholesalers, but would instead encourage existing companies to streamline (i.e. merges and acquisitions) with the aid of private capital/investment. The government may intervene if domestic prices become unstable.
  • In January 2016, Guangdong Salting Group opened a new salt production and processing facility (capacity of 40,000 MTs per year). The new facility will reportedly produce “high-end” salt including Aussie lake salt and low sodium sea salt.
  • China is the largest producer of salt in the world (~25% of global output), and had an estimated salt output/reserves of 71 million MTs in 2014.

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