50% export duty on molasses to boost ethanol production

New Delhi, January 16

The government has imposed 50% export duty on molasses, a by-product of sugarcane and key ingredient for ethanol production, amid likely decline in sugar production in the current season.

Move aimed at meeting blending target

• The move is aimed at boosting the availability of molasses for domestic distilleries and help meet the government’s ethanol blending target
• In the current year, the government aims to achieve 15% blending of ethanol with petrol
• India exports molasses to countries, including Vietnam, South Korea, the Netherlands, and the Philippines

According to a Finance Ministry notification, the order will come into force from January 18.

The move is aimed at boosting the availability of molasses for domestic distilleries and help meet the government’s ethanol blending target.

In the current year, the government aims to achieve 15% blending of ethanol with petrol.

Without diversion for ethanol, the government has estimated sugar production to decline to 32.3-33 million tonne in the ongoing 2023-24 season (October-September) as against 37.3 million tonne in the previous season.

India exports molasses to countries, including Vietnam, South Korea, the Netherlands, and the Philippines. Maharashtra, Karnataka and Gujarat are the three states which export molasses.