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Analysis on Issues Resulting from Abolishing Table Salt Monopoly (No 117, 2015)
2015-10-08
By Wang Jicheng & Yuan Dongming, Enterprise Research Institute
Research Report No 117, 2015 (Total 4802)
Abstract:
If table salt monopoly is abolished, market coverage of iodized salt will fall in the short run, table salt market will undergo divergence, focus of market regulation will be shifted, and enterprises monopolizing table salt business might suffer great impact. In response to decreased coverage of iodized table salt, the government should adopt various measures to enhance in a flexible manner consumers’ awareness about the importance of iodine supplement through increased publicity and relevant salt testing. Sufficient salt resources and overcapacity of salt industry determine that China’s table salt price can generally remain at a low level. Establishing a market mechanism to propel industrial development and enhancing industrial concentration are effective measures for reducing pressure on market regulation. As for table-salt-monopolizing enterprises, corporate reform and transformation should be proactively promoted in various places, with the focus on reposition of redundant personnel. By appropriately arranging the reform process and gradually introducing the competition mechanism, it is expected that consumers, enterprises and the table salt industry can all be benefited from reform dividends.
