…Business impact worsens as 50,000 MT remain idle The government has suffered an estimated foreign exchange loss exceeding USD100 million following a delay of more than a year in deciding the fate of over 50,000 metric tonnes of imported salt, raising fresh concerns over policy…
…Business impact worsens as 50,000 MT remain idle The government has suffered an estimated foreign exchange loss exceeding USD100 million following a delay of more than a year in deciding the fate of over 50,000 metric tonnes of imported salt, raising fresh concerns over policy uncertainty, regulatory inefficiencies and their impact on trade, logistics and food security. According to the Customs House Agents & Traders Association (CHATA), approximately 42,000 metric tonnes of salt imported in around 1,500 containers, together with another 10,000 metric tonnes brought in as bulk cargo, remain stranded due to the absence of a final government decision. When contacted, CHATA president Mohamed Niyas said the prolonged delay has resulted in mounting financial losses through container detention, shipping line demurrage, port storage charges and deterioration in product quality, while tying up valuable foreign exchange. “The country has already paid for these imports, yet neither businesses nor consumers have derived any benefit from them. The longer the delay, the greater the economic loss to the country, he noted. The imports were originally permitted after severe rainfall disrupted local salt production during the first quarter of 2025, prompting the government to temporarily relax import licensing requirements through Extraordinary Gazette No. 2437/04 to prevent shortages. However, while the emergency measure eased import restrictions, it did not impose a ceiling on import volumes, resulting in substantially larger quantities entering the country than required. The Association said several consignments subsequently failed to comply with shipment deadlines or mandatory quality standards, particularly iodine content requirements, leaving authorities with complex regulatory issues that remain unresolved more than a year later. From a business perspective, industry observers warn that the delay has also affected shipping, logistics and port operations, with thousands of containers occupying valuable storage space while importers continue to incur escalating charges. Adding to the challenge is the expiry of the recommended shelf life of much of the iodised salt. With an average shelf life of around 18 months, prolonged storage has reduced the commercial value of the consignments and may require further testing and processing before any possible release to the market. Niyas urged the government to adopt a practical solution by transferring the consignments to the National Salt Limited for technical evaluation, possible reprocessing and controlled utilisation instead of pursuing re-export, which he said is no longer commercially viable. He said such a move could help recover part of the economic value locked in the consignments, minimise further financial losses and ease the burden on both importers and the national economy.
By Ifham Nizam