Govt slaps 50% duty on exports of molasses amid cane shortage

The government has imposed a 50% export duty on molasses, a by-product of sugarcane, with effect from Thursday, a government order said on Monday, after erratic monsoon rains caused a shortage of sugarcane supplies.

- Puja Das

The export duty is a strategic measure to regulate the supply and demand of commodities, ensuring domestic availability.

Various sugar industry associations, such as the National Federation of Cooperative Sugar Factories Ltd (NFCSF), the West Indian Sugar Mills Association and the South Indian Sugar Mills Association, had sought export restrictions on molasses.

Quoting government officials, Mint on 29 December reported that the union government was considering a 50% duty on the export of molasses to augment supplies for meeting India's target for cleaner and more efficient ethanol-blended petrol.