Rapid market analysis of the salt value chain in Cox’s Bazar, Bangladesh

Salt farming and processing in Cox’s Bazar, Bangladesh, holds significant potential for improving livelihoods in vulnerable communities. The district's ideal geographic conditions, including access to water with suitable salinity, a long dry season, and ample sunlight, create a favourable environment for developing the salt sector. 

As part of the project “Leaving no one behind: Improving skills and economic opportunities for Women and Youth in Cox’s Bazar,” ILO conducted a rapid market analysis of the salt value chain in Cox’s Bazar to understand the challenges and opportunities within the salt production sector. This analysis builds on a previous study from 2018, incorporating new data to map the salt value chain, identify key market actors, and explore challenges and potential solutions, with a focus on benefiting Bangladeshi women and other vulnerable groups.

Salt in Bangladesh is primarily produced from seawater through solar evaporation and is consumed in three main segments: human consumption, animal consumption, and industrial use. Over the last decade, raw salt production has increased due to government support and technological improvements. The sector employs nearly 40,000 farming households in Chittagong and Cox’s Bazar and involves over 500,000 workers in the value chain from production to processing, indirectly supporting an estimated 2.5 million people. However, the sector faces significant challenges, including reliance on traditional farming practices, low quality of farm-stored salt, lack of innovation, inadequate value chain governance, and poor employment conditions due to informality.

To address these issues, the report recommends several market-based interventions. These include improving production and productivity through the adoption of advanced technologies and expanding the salt production zone, enhancing value chain governance by organizing producer associations and developing social dialogue mechanisms, and integrating with key industrial segments by establishing linkages with industries that use salt in their production processes. Additionally, promoting local product diversification, such as beauty products and tourism-related items, can provide salt producers and traders with additional income opportunities. By implementing these recommendations, the project aims to foster sustainable development in the salt sector, contributing to the socioeconomic growth of local communities in Cox’s Bazar.