Odisha's Idle Sugar Mills Fuel India's Sweet Tooth Crisis as Imports Soar

Across India, sugar prices are skyrocketing, with retail costs in Odisha hitting up to 70 rupees per kilogram. This comes as two major sugar factories in Odisha, the Asika Sugar Mill and the Jeypore Sugar Company (the Rayagada sugar factory), remain largely non-operational, leaving local farmers and consumers in a tough spot. Meanwhile, India has decided to allow duty-free imports of 1 million tonnes of raw sugar for the first time in nearly a decade to cool down prices and meet demand for the upcoming festive season. The current crisis stems from a mix of lower domestic sugar production, caused by crop diseases like Red Rot and Top Borer, and heavy rainfall. This has tightened global supplies, pushing international sugar prices up by over 16% in just two months. While the government says that diverting sugarcane for ethanol production isn't the main reason for high sugar prices, it is still a point of discussion. The shutdown of once-major mills like Asika, which is deep in debt, highlights a wider issue of neglect and falling interest in sugarcane farming in the region. Looking ahead, the Indian government has imposed stock limits on sugar dealers and bulk buyers to prevent hoarding and has also asked mills to start crushing sugarcane earlier, by mid-October, to bring new supplies to the market. In Odisha, there's a glimmer of hope as the government is working with India Potash Limited (IPL) to revive other closed mills, like Badamba and Bijayananda, promising investments to boost sugarcane farming and create jobs. But the big question for places like Asika and Rayagada remains: when will their own mills truly come back to life, and who will really gain from the current import-heavy situation?