Odisha’s iron ore industry is facing significant challenges, with production and exports witnessing a sharp decline in recent months, primarily due to heavy rainfall and reduced demand from China, according to State Cabinet Minister for Commerce & Transport, Steel & Mines, Bibhuti Bhusan Jena.
Speaking at a discussion organised by the Indian Chamber of Commerce (ICC) and Laghu Udyog Bharati on ‘Empowering Odisha’s Growth Engine,’ the minister highlighted the state’s struggles in the mining sector.
Over the past four months, iron ore production in Odisha has dropped by approximately 33%, from 20 million metric tons last year to 13 million metric tons this year, largely due to monsoon-related disruptions. While the state achieved a total production of 169 million metric tons in 2023-24, it rose slightly to 179 million metric tons in 2024-25. However, exports have plummeted by 26%, with China, a key buyer, significantly reducing its imports.
Minister Jena emphasised Odisha’s vast mineral wealth, noting that the state holds 96% of India’s chromite, 92% of nickel, 51% of bauxite, 33% of iron ore, and 41% of manganese reserves. Of the 386 mines in Odisha, over 200 are currently operational. However, challenges such as transit permits, land acquisition issues, and export duties have hindered the sector’s growth. These concerns were raised at a recent conference of central ministers, where Odisha’s potential was praised, but operational bottlenecks were also highlighted.
The minister acknowledged that while Odisha’s mineral resources offer immense potential, state intervention in issues like export duties is limited due to broader policy constraints. “Despite the challenges, Odisha remains a powerhouse of mineral resources, and we are committed to addressing operational hurdles to boost the sector,” Jena stated.
