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NEW DELHI: India could earn up to $100 billion through trading of certified emission reductions (CERs) or carbon credits, a government official said on Wednesday.
“There are about 930 carbon credit projects already in the Indian carbon trade basket, while around 180 more such projects are likely to be added every year,” said SN Dash, secretary at the ministry of heavy industry & public enterprises.
India has already sold carbon credits worth $300 million, he told a national seminar on Indian sugar machinery industry, organised by industry body CII in New Delhi.
Companies in the developed economies buy carbon credits to offset their excess emissions. Carbon credits are issued to companies in the developing countries by an international authority for reducing emissions.
Mr Dash said there was great potential for the Indian sugar industry in the carbon market. “Given the scale of sugar enterprises in India, the industry should encash the potential of CER trading,” he said.
He also spoke about how the industry can make significant contributions in meeting the national power requirements. “In 2008, 10% ethanol blending to petrol was permitted and the effects are being studied. Sugar industry can, therefore, supplement ethanol production and reduce nation’s dependence on petrochemicals, and contribute to CERs,” Mr Dash said.
Meanwhile, on the sidelines of the event, Indian Sugar Mills Association president Samir Somaiya said that the country’s sugar prices are likely to be steady, as supplies will ease demand. He also said India, which is the world’s top sugar consumer will still import sugar.
“Sugar mill owners have contracted raw sugar imports of 1.3 million tonnes, of which 9,00,000 tonnes have already arrived, and more imports are expected,” he said. “Also, the initial stock of 8 million tonnes, plus this season’s output of more than 14.7 million tonnes would lift local supply to 22.8 million tonnes.”
While the trade body had earlier projected that sugar stock would slump to 2 million tonne this year, but has now revised its forecast to 4 million tonnes. According to ISMA, last year sugar stock was at 8 million tonnes.
But according to the government estimates, stock is at 10 million tonnes at the start of the current season. The sugar season will start from October 1. Mr Somaiya was speaking on the sidelines of a seminar on Indian Sugar Machinery Industry organised by industry body CII.
Meanwhile, Simbhaoli Sugars ED G S C Rao said that the company has contracted 40,000 tonnes of raw sugar from Brazil. “We will start processing the sweetener from the third week of June,” he said. Mr Rao also said the supply side of sugar will be met through such imports in the coming months and the retail price of sugar is expected to be at Rs 26/kg. Earlier this month, the government had allowed sugar mills to import duty-free raw sugar, without any export obligation. It has also exempted mills from any levy obligation if they import raw sugar. Under the levy system, mills were to sell 10% of their production to the government at a cheaper rate.
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While it is heartening that India and China are doing very well in cashing the carbon market opportunity, I’d be much more happy if other poor countries can also join the race. UN and governments should do more on this line. Article is OK, but there’s repetition of first 5 paragraphs at the end. Seems they don’t even bother to read twice if what is being posted on the news.
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