The central government has imposed a 50 per cent export duty on molasses, amid a possibility of a decline in domestic sugar production in the current season.
The proposed export duty shall come into force on January 18, 2024, an official notification from the Ministry of Finance said.
Molasses are a by-product of sugar which is utilised for ethanol production to promote a green economy.
ADVERTISEMENT
Of the total ethanol produced in the country, ethanol from cane juice notably accounts for 25-30 per cent while that from B heavy molasses accounts for over 60-65 per cent. Ethanol from C-heavy molasses and grains accounts for the rest.
The Food Ministry in early December directed sugar mills not to use cane juice or syrup to produce ethanol.
