The government’s order to levy 50% export duty on “molasses resulting from the extraction or refining of sugar” will make available more molasses for ethanol production, according to the India Sugar & Bio-energy Manufacturers Association (ISMA)
M. Prabhakar Rao, president of the Association, said in a press release that almost 15 lakh tonnes of molasses, which is nearly 10% of molasses produced, is exported annually. This is worth around ₹ 38 crore litres of ethanol.
The Central government has restricted sugarcane juice/syrup diverted for production of ethanol and is encouraging use C heavy molasses for ethanol production.
“We had requested the government to completely stop export of molasses with immediate effect as that will add to the country’s ethanol production…In light of this, the move to levy 50% export duty on molasses resulting from the extraction or refining of sugar is very welcome,” he said.
Mr. Rao also demanded increase in the procurement price of ethanol made from sugarcane syrup/juice, B heavy and C heavy molasses feed stocks by at least ₹10 per litre for the current ethanol year.
