Lok Sabha Debates
Need To Establish Carbon Exchange Market For Rubber. on 25 August, 2010
> Title: Need to establish Carbon Exchange Market for rubber.
SHRI ANTO ANTONY (PATHANAMATHITTA): Respected Madam, I would request the Government to introduce a Bill to establish a Carbon Exchange Market for rubber. India has lead the global climate change initiative and benefited from the Clean Development Mechanism (CDM) projects but it does not have a single carbon exchange market operating in the country. Rubber trees is a unique agro-forestry asset with multiple utility contributing tremendously to industry, employment besides helping in carbon mitigation in green house gas (GHG) emission and conserve the environment.
Rubber has a tremendous potential to neutralize the carbon footprint of industry linked to it besides generating alternative energy. The establishment of commodity exchange had helped stabilize prices of agricultural commodities and in a similar manner establishment of carbon exchange market can help in carbon mitigation and usher in investment flows in the industry and provide additional resources to small and marginal cultivators. Even the Ministry of Environment and Forestry is mulling on the issue of national carbon budgeting and establishment of carbon exchange market will help valuably to revitalize the rubber plantation to withstand fluctuations arising from international trade and contribute to livelihood security and rural development. The cost of mitigation is lower at rural level and the industry too will be able to reap the benefits of the exchange market and contribute in their social responsibility. This initiative will also help India gain mileage in the international negotiation on Climate Change and lead the global initiative.
The development of Carbon Exchange Market will help in stabilizing the income of rubber farmers' income, help in farmers during the replanting stage for six years when there is no income to the farmers. This market will also help strengthen rubber co-operative societies providing valuable assistance to the small and marginal farmers. It would also help in increasing the asset value of the farmers and increase the credit worthiness. Even the crop insurance and the commodity market exchanges can be interlinked to revitalize plantation crop and offset the increase in the cost of cultivation and the uncertainties of weather.
The Government needs to introduce a Bill for the establishment of a carbon exchange market for in the same pattern as the Commodity Exchange Market with base capital support by the Government of India and incentivizing the industry to take advantage of these markets besides providing a relief to the small and marginal farmers for their contribution in sequestrating the carbon from the environment. So far India has been trading carbon through the International markets and does not have a domestic carbon exchange market.
Therefore, I would plead to the Government to introduce a Bill to establish a Carbon Exchange Market for rubber using its forward industrial linkage and provide safeguards to the income of the small and marginal farmers besides removing the carbon from the atmosphere and contribute to global mitigation. This would be a pioneering initiative and help the country to lead the global initiative on climate change.