NEW DELHI: Government has imposed 50% duty on exports of molasses, a by-product of sugarcane used as raw material for ethanol manufacturing, from January 18. It also extended the existing concessional duty rates on imports of crude and refined edible oils, palm, soyabean and sunflower, by one year till March 31, 2025.
While the first move will increase the availability of molasses in the domestic market for accelerating ethanol production, the second move aims to ensure edible oils are available at the current affordable rate.The lower import duty was to expire in March this year. The basic import duty on refined soyabean oil and sunflower oil was cut to 12.5% from 17.5%, in June last year.
Finance ministry notified the steep export duty on molasses amid concerns over the fall in sugarcane and sugar production due to erratic monsoon this year, particularly in Maharashtra and Karnataka. Government had also restricted the use of sugarcane juice/ syrup for production of ethanol to avoid any shortage of sugar, and had also urged the sugar mills to use maximum C-Heavy molasses for ethanol production.
Earlier, food ministry officials had said that India has been so far the biggest exporter of C-Heavy molasses, which is used for ethanol production. India is the largest molasses exporter and the key importers include the Netherlands, Philippines, Vietnam, South Korea, and Italy.
The chief of Indian Sugar and Bio-energy Manufacturers Association (ISMA) M Prabhakar Rao said “We had requested the government to completely stop export of molasses with immediate effect…In light of this, the move… is very welcome.”
While the first move will increase the availability of molasses in the domestic market for accelerating ethanol production, the second move aims to ensure edible oils are available at the current affordable rate.The lower import duty was to expire in March this year. The basic import duty on refined soyabean oil and sunflower oil was cut to 12.5% from 17.5%, in June last year.
Finance ministry notified the steep export duty on molasses amid concerns over the fall in sugarcane and sugar production due to erratic monsoon this year, particularly in Maharashtra and Karnataka. Government had also restricted the use of sugarcane juice/ syrup for production of ethanol to avoid any shortage of sugar, and had also urged the sugar mills to use maximum C-Heavy molasses for ethanol production.
Earlier, food ministry officials had said that India has been so far the biggest exporter of C-Heavy molasses, which is used for ethanol production. India is the largest molasses exporter and the key importers include the Netherlands, Philippines, Vietnam, South Korea, and Italy.
The chief of Indian Sugar and Bio-energy Manufacturers Association (ISMA) M Prabhakar Rao said “We had requested the government to completely stop export of molasses with immediate effect…In light of this, the move… is very welcome.”