Salt industry relieved of administrative burdens

China is expected to deregulate approvals for table salt production and pricing, media reported Tuesday, a move which reinforces the government's determination to simplify the country's administrative review system.

Two ministries met on Tuesday afternoon to mull a plan to deregulate the administrative reviews of table salt pricing and its production, the China Business News reported Tuesday, citing unnamed government officials.

The two ministries were the National Development and Reform Commission (NDRC), the country's top economic planner, which oversees approval for table salt production planning, allocation and pricing, and the Ministry of Industry and Information Technology, the country's industry watchdog, charged with issuing designated production license, according to the report.

The reform will focus on streamlining administrative reviews and would not fundamentally change the State monopoly, a source was quoted by the report as saying.

The new move was seen by analysts as a response to the State Council's call last week to cut bureaucracy and as a step forward toward fully opening up the salt industry to make it more competitive.

An industrial source who wished to remain anonymous told the Global Times Tuesday that the government has already determined to deregulate the approval on table salt production and pricing and such a move will be imminent.

Reforming the State monopoly on the salt industry will happen but there is still no fixed timetable for it.

China allows a monopoly on the production and sale of table salt to stabilize its price, with each geographic region having a designated salt producer.

Most of the supply chain for table salt is controlled by the NDRC, with local authorities regulating the retail price.

"The salt monopoly originated in ancient times. It would be difficult to break it as this will be opposed by a range of interest groups," Ma Wenfeng, an analyst with Beijing Orient Agribusiness Consultant Co, told the Global Times.

Media reported earlier that the China National Salt Industry Corporation and China Salt Association were among those who opposed the reform on the salt monopoly.

Neither could be reached for comment Tuesday.

"The delay in reforming the State's salt monopoly was not necessarily caused by pressure from interest groups. Profits from salt sales are very low, so it can generate little revenue for local governments," the industry source said.

"The challenges come from how the government will roll out a plan which will not lead to a hike of table salt prices and without negatively affecting many jobs in the salt industry," the source said.