ISMA (India Sugar & Bio-energy Manufacturers Association) welcomes the government’s order to levy 50% export duty on ‘Molasses resulting from the extraction or refining of sugar’.
It is known that every year around 15-16 lakh tonnes of molasses is exported, which accounts for almost 10% of the total quantity of molasses produced. In ethanol terms, this molasses is worth around 38 crore litre of ethanol.
In the current scenario, where the Government of India has decided to restrict sugarcane juice/syrup for production of ethanol, and government is encouraging sugar mills to use maximum C Heavy molasses for the production of ethanol, with molasses being the main feed stock for production of ethanol, its availability in India will play an important role in contributing towards the Ethanol Blending Program.
According to Mr. M Prabhakar Rao, President ISMA, “ We had requested the government to completely stop the export of molasses with immediate effect as that will add to the country’s ethanol production, thereby reducing dependence on other feed stocks to some extent. In light of this, the move to levy 50% export duty on molasses resulting from the extraction or refining of sugar is very welcome”.
Mr. Rao also requested the government to consider increase in the procurement price of ethanol made from Sugarcane syrup/juice, B-Heavy Molasses and C-Heavy Molasses feed stocks by at least Rs.10/- per ltr for ESY 2023-24. In a recent letter to the government, ISMA had shared its concern on the current pricing structure that does not adequately reflect the production costs and the significant investments made by the sugar industry to enhance ethanol production from diverse sources.
President Rao re-iterated sugar industry’s and ISMA’s alignment with the government’s Ethanol Blending Program and reassured the industry’s commitment to the same.
