Against the backdrop of a bumper sugarcane harvest and estimated sugar output
Against the backdrop of a bumper sugarcane harvest and estimated sugar output of 30.5 million tonnes (MT) in the next crushing season, the millers are looking to tap export of molasses to improve their cash flow and provide additional stability to the sugar sector amid demand-supply volatility.
Molasses is a cane by-product generated during sugar production. Molasses recovery is pegged at 4.75% of cane crushed. It is processed to make ethyl alcohol and methyl alcohol. While, ethyl alcohol is unfit for human consumption, methyl alcohol is used for making liquor by distilleries, besides having other pharmaceutical uses. Molasses is also processed to make ethanol, which is mixed with fuel under the central policy.
Molasses is in high demand in several countries, including South Korea, Vietnam, Europe and West Asia for different industrial applications, including cattle feed, inflammable product etc.
Since, molasses commodity is a state subject, the respective governments enjoy jurisdiction on its interstate…