India Imposes 50% Export Duty On Sugar-Derivative Molasses

The central government has imposed a 50 per cent export duty on molasses, amid a possibility of a decline in domestic sugar production in the current season.

The proposed export duty shall come into force on January 18, 2024, an official notification from the Ministry of Finance said.

Molasses are a by-product of sugar which is utilised for ethanol production to promote a green economy.

Of the total ethanol produced in the country, ethanol from cane juice notably accounts for 25-30 per cent while that from B heavy molasses accounts for over 60-65 per cent. Ethanol from C-heavy molasses and grains accounts for the rest.

The Food Ministry in early December directed sugar mills not to use cane juice or syrup to produce ethanol.

The central government in mid-December, however, allowed the utilisation of juice as well as B-heavy molasses to produce the ethanol but capped the diversion of sugar at 17 lakh tonnes for the current marketing season.

India has already rolled out 20 per cent blended fuel, though, in a phased manner, in April 2023 and widespread availability is expected in days to come.

E20 blending in petrol was introduced by the Centre to reduce the country’s oil import cost, energy security, lower carbon emissions and for better air quality.

The government had advanced the target of E20 fuel from 2030 to 2025. (ANI)

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