How to Make Money from Iodized Salt Production 

Introduction to make money from iodized salt production 

Anyone can start the iodized salt production business, as it is one of the simple salt business ideas. Additionally, you can initiate it with low investment on a small-scale basis. The salt manufacturing process is easy and produces iodized salt by iodinating the common salt. India is the third-largest salt producing country in the entire world after next to the US and China. There are many salt factory in India.

Ideas to make money from iodized salt production business

The present demand for the iodized salt is estimated to be around 281,514 tons per annum. However, experts estimate that the demand will rise to 413,412 tons by the year 2020.

Before all this, you need to design the iodized salt production business plan. 

Iodized salt production market potential to make good money

Iodized salt appears as white crystalline powder fortified by Iodine. The majority of the population in India are prone to iodine deficiency disorder (IDD) since here soil lacks iodine content thereby they lack iodine-containing foods. IDD can be easily eluded by the intake of a sufficient amount of iodized salt regularly in various eatables. There are many uses of iodized salt. 

Salt fortification is a mostly cost-effective method that makes sure everyone receives a steady and constant iodine supply. Iodized salt improves thyroid functioning, fights against depression, improves brain function, controls body weight, and many more. The current population with increased health awareness and spending capacity is the major aspect of the increasing demand for iodized salt.

Currently, there are 18 iodization plants, among them, 4 plants are following dry mixing type method whereas 14 plants are using wet spray procedure. The need for iodized salt is greater than 60 lakh tons per year as per the survey conducted by the ministry of health. To meet this demand, more production capacities are needed. The common salt is produced in bulk in India and is available for human consumption. So only to a few percent salts is iodized which is not enough to meet the demand for iodized salt. This indicates the presence of a stable market for iodized salt. Gujarat is the largest salt production state in India.

Before starting the business you might think ‘Is the salt business profitable?

Iodized salt production business registration

For initiating the iodized salt production business, the people must acquire different registrations and licenses from the government authority in India. These are as follows:

  • Business registration with ROC.
  • Must obtain a trade license from municipal authority.
  • Factory license
  • Udyog Aadhaar MSME registration for subsidies from the government.
  • Food business operator license
  • BIS certification
  • The Vat registration varies from one state to another. However, it is recommended to check your state regulations.

These registrations and licenses should be acquired from respective authorities in India.

Finance for iodized salt production business

The total initial capital is based on your desired production output and total project cost of salt iodized production. Broadly, you can segregate the cost into two segments. The fixed capital investment and another one as a working capital investment. The fixed capital investment comprises land, building, and machinery. But, working capital investment comprises raw materials, utilities, packaging consumables, human resources, etc. You may avail of a loan from any bank or financial institution if you can bear around 25 – 30% of the project cost as collateral security.

Iodized salt production machinery and utilities

For the beginning, a medium scale, iodized salt production unit the machinery is required are included below.

  • Silos (stainless steel)
  • Crushers (Roller/ball)
  • Mixers
  • Packing Machines

The major need for the unit is electricity. Because it is the driving source for heavy crushing machines equipped in the unit. Also, you must arrange for water supply provision in the plant.

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Raw materials required for iodized salt production 

You must prepare the production program as per the selected plant capacity and estimated market share you want to hold. In the beginning stage of production, the plant may need a few years to establish in the market. Therefore, the plant will initially operate at around 75% of its rated annual capacity. Iodized salt can be produced through different methods.

Iodizing the edible salts with potassium iodate, potassium iodide, and calcium iodate, are the most well-known production process. Potassium iodide is unstable. Thus, you must add stabilizers (like calcium carbonate) to lessen the loss of iodine, in the case of using Potassium Iodide. The iodate, on the other hand, is stable up to 560 °C except in extreme conditions. Potassium iodate will not deplete and can remain even after 300 days in stock as iodized salt.

Even, the health ministry has informed that the potassium iodate is suitable for iodinating the salt. According to the 1987 BIS standards, to obtain 30 ppm of iodine, you must add 50 ppm of potassium iodate. To have the iodized salt, it is important to dissolve the iodate in water or saturated brine. Later salt crystals are mixed with the aqueous solution to obtain iodized salt.

As per the Indian salt industry report, there is an increasing demand for the product in the market. The iodized salt production business is one of the most money-making investment chances in India. The income statement and the other aspects of the profitability reflect that the project is economically viable.

The cost involved in the production of iodized salt

The cost involved in iodized salt production.
The cost involved in iodized salt production.

The cost involved in the production of the iodized salt is – as the production of iodized salt is a simple process and it requires only very less amount. If you want to start it on a small scale then the investment required is Rs. 1,00,000 to Rs. 1,50,000. Then you can expect the profits also on a smaller scale. You can get profits from Rs. 10,000 to Rs. 15,000 per month. So, you can expect Rs. 1,20,000 to Rs. 1,80,000 per year.

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Iodized salt project synopsis for commercial-scale production

Plant capacity is 20 tons/day

Plant and machinery: Rs. 36 lakhs

Working capital: Rs. 24 lakhs

T.C.I: Rs. 91 lakhs

the returns can be expected from 50-60%

Break-even analysis is 45.87%

The original price of the iodized salt manufacturing project may vary for different assumptions. You can change the project capacity and project cost as per your need.

Frequently asked questions about iodized salt

The following are the frequently asked questions for starting the iodized salt production in India.

List of the ingredients used in iodized salt?

For preparing the iodized salt the following ingredients are used, which include – salt, calcium silicate, sugar, and potassium iodide.

What are the health benefits of iodized salt?

There are many health benefits of iodized salt. These include – table salt helps in preventing iodine deficiency disorders. The thyroid gland uses iodine that produces thyroid hormones, that aids in regulating metabolism, tissue repair, and promote proper growth and development.

Do all the types of salts are iodized?

Iodised salt is also spelled as iodized salt is a table salt that is mixed with a little number of various salts of the iodine which is a microelement.

How can anyone know that the salt is iodized?

To know the difference you need to look at the chemical level. But both the salts look and taste the same.

How much-iodized salt should be consumed daily?
Adults should consume 150 micrograms i.e., one to one and a half spoon of salt daily.


  1. Hello,

    Greetings to you and thanks so much for all you are doing.

    Am interested in starting Iodized Salt Production. Can I know the source of the needed machines and utilities in producing the iodized salt?

    Thanks alot,



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