India’s Ministry of Mines informed Parliament today that bauxite production in the country has dropped by almost 73 per cent to 7,269 thousand tonnes (7.26 million tonnes) in financial year 2016-17.
The sharp drop in production from 27,146 thousand tonnes (27.1 million tonnes) in FY 2015-16 can be attributed to a number of politico-economic factors.
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Currently, bauxite exploration in the country is being carried out by various agencies in the states of Jharkhand, Odisha, Chhattisgarh, and Gujarat, the Minister of State for Coal and Mines, Haribhai Parthibhai updated parliament.
Orissa, Gujarat, Jharkhand, Maharashtra, Chhattisgarh, Tamil Nadu and Madhya Pradesh are the main bauxite producing states in India.
According to a BMI Research report published last year, the estimated bauxite production is supposed to increase by about 18 per cent year-on-year in 2017. By 2021, it is expected to increase to 49.4 million tonnes.
Other sector analysts suggest India's bauxite production growth will pick up momentum in the coming quarters driven by the growing demand from the domestic aluminium industry. The growth is projected due to the five-fold increase in mining lease area in Odisha, a market research report noted.
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