India's Sugar Sector Taps Global Carbon Markets

The Indian sugar industry is poised for a significant shift as it enters global carbon markets via a new collaboration with the Global Carbon Council. This groundbreaking partnership offers Indian sugar mills a pathway to measure, verify, and monetize their emission-reduction activities, thereby unlocking substantial new revenue streams and reinforcing the sector's commitment to clean energy initiatives. This includes expanding its role in areas such as ethanol production, compressed bio-gas, and sustainable aviation fuel.

Director General Deepak Ballani of the Indian Sugar Mills Association (ISMA) highlighted the critical importance of revising the minimum selling price for sugar. He noted that despite rising production costs and farmer payments (FRP), the minimum support price has remained unchanged for several years. A timely revision is deemed essential for the industry's financial health and to ensure prompt payments to sugarcane farmers, maintaining the sector's operational stability.

Looking ahead, Ballani projects a healthy closing stock of 60-65 lakh tonne for the current season, with production estimated at 343 lakh tonne against consumption of 285 lakh tonne and exports of 15 lakh tonne. He foresees a favorable export opportunity for India from mid-December to March, before Brazilian supplies become dominant in the international market, potentially benefiting white sugar exports.