New Delhi: The Union government is contemplating a 50% duty on molasses exports to boost supplies for India’s target of achieving ethanol-blended petrol, reported Live Mint.
Currently, India does not impose an export duty on molasses, a byproduct of sugarcane refining crucial for ethanol production. The potential duty aims to discourage exports due to sugarcane shortages resulting from erratic monsoon rains.
India aims for 20% ethanol-blended petrol by 2025-26, up from the current 12%. A substantial export duty on molasses, supported by various sugar industry lobbies, could enhance the availability of ethanol-blended petrol.
Today, Indian Sugar & Bio-energy Manufacturers Association (ISMA) has also reiterated industry’s appeal to ban export of molasses with immediate effect.
