India now targets curbing molasses shipments, may impose 25% export duty

Amid a likely drop in sugar manufacturing in subsequent seasons which may also decrease the provision of molasses, a key feedstock for ethanol manufacturing, the Indian Government is thinking about enforcing a 25% consistent with cent responsibility at the export of molasses to scale back shipments and make it to be had for home distilleries. Though the suggestion to levy a responsibility on export has been beneath neath dialogue for pretty a few time, the Finance Ministry is thought to have realized its significance now and might quickly notify it. “The choice may be very important to test shipments because the goal of ethanol mixing with petrol has been set at 15 consistent with cent all through the 2023-24 season (November-October) in opposition to 12 consistent with cent cutting-edge season”, a professional supply stated.

Output estimate

The Government is to launch the sugar manufacturing estimate for the subsequent season (October-September), even as the Indian Sugar Mills Association has pegged it at 31. sixty eight million tonnes (mt), decrease from an envisioned 32.eight mt in the ongoing 2022-23 season. Export of molasses withinside the first quarter (April-June) of the cutting-edge financial has been recorded at 2,83,598.19 tonnes worth ₹361 crore while withinside the whole 2022-23 financial it turned into 16,08,906.7 tonnes worth ₹2,034 crore, professional records show. Industry officers stated the principle season for export begins off evolved from November after sugarcane crushing choices up and through April maximum of the crushing is finished in Maharashtra, Karnataka and Gujarat, the 3 most important exporters of molasses.

A welcome pass

It might be a welcome step if the authorities come to a decision to limit the export of molasses. There is already apprehension of decreased sugar manufacturing as sugarcane crop in Maharashtra and Karnataka has been affected because of dry August. Sugar generators in Maharashtra who’ve invested in putting in place distilleries for ethanol manufacturing worry that they will now no longer also be capable of utilizing eighty consistent with cent in their capacities, stated BB Thombare, President, West Indian Sugar Mills Association. However, a pinnacle professional of a cooperative frame of Maharashtra stated even though the ethanol mixing programme (EBP) is a countrywide scheme and must take delivery of priority, the authorities must similarly bear in mind the effect of the sort of pass at the small sugar generators who do now no longer have distilleries and get higher fee realization from export than promoting the molasses to the home industry.

Leave a Reply

Your email address will not be published. Required fields are marked *