Molasses obtained from the refining of sugar is subject to a 50% export levy imposed by the government.

  • The Center has placed a 50% export tariff on molasses that come from the extraction or refinement of sugar, according to a government notification that was made public on January 15. As of January 18, this duty will exist.
  • Earlier, the government is contemplating a duty on molasses exports to boost supplies for India’s target of achieving ethanol-blended petrol.
  • The Indian government is ambitious of attaining 20 per cent ethanol-blended petrol by 2024-25 and 30 per cent by 2029-30. The government had advanced the target of E20 fuel from 2030 to 2025.
  • The Food Ministry in early December directed sugar mills not to use cane juice or syrup to produce ethanol. In a U-turn, the central government in mid-December allowed the utilisation of juice as well as B-heavy molasses to produce ethanol but capped the diversion of sugar at 17 lakh tonnes for the current marketing season.

Source: Chinimandi