"Sugar factory in Arabi resumes operations after Hurricane Ida, farmers are concerned about potential losses."

Electricity has been restored at the Chalmette sugar factory in Arabi, Louisiana, which temporarily shut down due to Hurricane Ida. The owner of the ASR Group company announced that sugar production will resume this weekend. Source: Reuters.

The second sugar factory in the affected area, the Gramercy plant, is still not operational. This factory is a joint venture between Cargill, Inc. and Louisiana Sugar Growers and Refiners, Inc.

Farmers and agronomists are assessing potential losses for sugarcane production in Louisiana, the second-largest producer in the USA after Florida. Initial reports so far indicate minor crop issues.

Sugar analyst from Czarnikow, Vincent O'Rourke, noted: "Plants are reporting minimal damages and mainly power issues. Harvesting will only start in a month, giving them enough time."

As a result of the hurricane, sugarcane can be knocked down. If the sugarcane is not flooded, the fallen stems can still be harvested, although it will be a more complex and costly operation.

If sugar production is reduced, the US government may introduce additional low-tax import quotas.