Carbon market access to unlock new income streams for sugar mills, says ISMA’s Deepak Ballani

Deepak Ballani, Director General of Indian Sugar Mills Association (ISMA), said the industry’s move into global carbon markets through its new partnership with the Global Carbon Council (GCC) marks a turning point for India’s sugar sector, opening a major new revenue stream for mills.Calling it a “first internationally recognised carbon market programme,” Ballani said the memorandum of understanding (MoU) will help mills measure, verify and monetise emission-reduction activities, giving them “clear access” to global voluntary and bilateral carbon markets. He added that this step strengthens the sector’s role in clean energy, encompassing ethanol, compressed bio-gas (CBG), cogeneration, sustainable aviation fuel (SAF), and even green hydrogen.

Ballani acknowledged the government’s recent approval for 1.5 million tonne of sugar exports as a positive move, but underscored that revising the minimum selling price is now crucial. He stated that the minimum support price (MSP) has not changed for five to six years despite higher FRP and rising costs, saying a revision is “utmost important” for industry viability and timely farmer payments.

On production, he pegged the current season’s estimate at 343 lakh tonne, with consumption at 285 lakh tonne and exports at 15 lakh tonne. With 34 lakh tonne already diverted to ethanol and more diversion expected in Cycle II, he anticipates closing stocks of 60-65 lakh tonne—levels he considers healthy for maintaining stable domestic prices.Also Read: ISMA welcomes sugar export nod, seeks long-term policy clarity on MSP and ethanol

Regarding global dynamics, Ballani expects an international surplus of about 4 million tonne but sees a favourable window for Indian exports from mid-December to March before Brazilian supplies hit the market. He said inquiries have already come from Afghanistan, Kazakhstan and African buyers, adding that whites could remain viable for export during this period.

For the entire interview, watch the accompanying video

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