SN Dash, secretary at the ministry of heavy industry & public enterprises said there was great prospective 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,” Dash said.
Dash also said that industry can make significant contributions in meeting the national power needs. “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,” Dash said.
In the meantime Indian Sugar Mills Association (ISMA) president Samir Somaiya said that the nation’s sugar prices are expected to be steady, as supplies will ease demand. He also said India, which is the top sugar consumer will still import sugar.
“Sugar mill owners have contracted raw sugar imports of 1.3 million tones, of which 9,00,000 tones have already arrived, and more imports are expected,” Samir said. “Also, the initial stock of 8 million tones, plus this season’s output of more than 14.7 million tones would lift local supply to 22.8 million tones.”
While ISMA had previously expected that sugar stock would slump to 2 million tone a year, but has now revised its forecast to 4 million tones. According to ISMA, last year sugar stock was at 8 million tones.
But according to the government estimates, stock is at 10 million tones at the start of sugar season from October 1, 2009.
Meanwhile, Simbhaoli Sugars ED G S C Rao said that the company has contracted 40,000 tones of raw sugar from Brazil. “We will start processing the sweetener from the third week of June,” Rao said. Rao also said the supply side of sugar will be met via such imports in the coming months and the retail price of sugar is expected to be at INR26/kg.
Earlier in April 2009, the government had permitted 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.
