India slaps 50% duty on molasses exports

New Delhi: The government has imposed a 50% export duty on molasses, a by-product of sugarcane, with effect from Thursday, according to a government order. This decision, announced late Monday, is in response to a sugarcane shortage caused by erratic monsoon rains. 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, the West Indian Sugar Mills Association, and the South Indian Sugar Mills Association, have sought export restrictions on molasses. This follows a proposal by the food department. 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. The government aims to achieve its E20 (20% ethanol blended petrol) target by ...