Central government imposed 50 percent export duty on molasses, new rates will be effective from January 18

New Delhi (Uttam Hindu News) The central government has imposed 50 percent export duty on sugarcane by-product molasses from January 18. Molasses is used as an input for alcohol production.

The purpose of the government’s decision is to ensure that adequate quantity of raw material is available to meet the production target of ethanol (alcohol). Ethanol is blended with petrol to reduce vehicle emissions and is also used to produce medicines in the pharmaceutical industry. There are fears that domestic sugarcane production may fall in the current harvesting season due to irregular monsoon. And the government is ready to prevent any shortage of jaggery in the country.

The government aims to achieve the target of 20 per cent ethanol blended petrol by 2025-26 from the current level of 12 per cent as part of its biofuel policy push. India is the world’s largest exporter of molasses and contributes about 25 percent to global trade. The major exporting states are Maharashtra, Gujarat and Karnataka. Major countries where molasses is exported include Netherlands, Philippines, Vietnam, South Korea and Italy.