Updated January 17th, 2024 at 11:55 IST
ISMA supports govt’s decision to levy 50% export duty on molasses
According to the report, every year around 15-16 lakh tons of molasses is exported, which accounts for almost 10 per cent of the total quantity of molasses.
Export duty on Molasses: India Sugar & Bio-energy Manufacturers Association (ISMA) welcomes the government’s order to levy 50 per cent export duty on Molasses resulting from the extraction or refining of sugar, a press release stated on Tuesday.
According to the report, every year around 15-16 lakh tons of molasses is exported, which accounts for almost 10 per cent of the total quantity of molasses produced. In ethanol terms, this molasses is worth around 38 crores of liter of ethanol.
In the current scenario, where the government of India has decided to restrict sugarcane juice/syrup for the production of ethanol, and the government is encouraging sugar mills to use maximum C Heavy molasses for the production of ethanol, with molasses being the main feedstock for the production of ethanol, its availability in India will play an important role in contributing towards the Ethanol Blending Program.
“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 feedstocks to some extent. In light of this, the move to levy 50 per cent export duty on molasses resulting from the extraction or refining of sugar is very welcome,” M Prabhakar Rao, President ISMA said.
Rao also requested the government to consider an increase in the procurement price of ethanol made from Sugarcane syrup/juice, B-heavy molasses, and C-heavy molasses feedstocks by at least Rs 10 per litre for ESY 2023-24. In a recent letter to the government, ISMA shared its concern about 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 the sugar industry’s and ISMA’s alignment with the government’s Ethanol Blending Program and reassured the industry’s commitment to the same.
Published January 16th, 2024 at 20:46 IST