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Backward integration - chrome ore (Sukinda)
What it is
Chromite ore from the Sukinda valley in Odisha is the feedstock for ferrochrome, and Odisha produces over 90% of India's ferrochrome. Access to ore is through captive mines or long-term linkage rather than an open market
Production hubs at Jajpur, Sukinda and Kalinganagar cluster around the deposit
Impact on industries
- Captive chrome ore is the decisive cost advantage in ferrochrome, since ore is the largest input and merchant availability is limited
- Geographic clustering of mine, smelter and power puts Odisha producers among the lowest-cost globally
- Producers without captive ore are structurally disadvantaged and dependent on auction outcomes for access
- The region is saturated with basic high-carbon ferrochrome capacity, so growth must come from value addition rather than tonnage
- Concentration in one district creates a single point of exposure to state policy, royalty changes and logistics constraints