Molasses

The government has recently imposed a 50% duty on exports of molasses, along with the extension of concessional duty on edible oils.

Why Export Duty was imposed on Molasses?

• Export Duty was imposed on Molasses due to concerns over declining sugarcane and sugar production, primarily due to erratic monsoons, especially in Maharashtra and Karnataka.
• The move can increase the availability of molasses in the domestic market, thereby accelerating ethanol production.
• To avoid sugar shortages, the government has restricted the use of sugarcane juice/syrup for ethanol production, urging sugar mills to prioritize C-Heavy molasses for ethanol production.

Significance:

• India has been the largest exporter of C-Heavy molasses, crucial for ethanol production.
• Key importers of C-Heavy molasses include the Netherlands, Philippines, Vietnam, South Korea, and Italy.

About the Extension of Concessional Duty on Edible Oils:

• Extension Period: The existing concessional duty rates on imports of crude and refined edible oils, including palm, soybean, and sunflower, have been extended by one year until March 31, 2025.
• Earlier Duty Reduction: In June 2023, the basic import duty on refined soybean oil and sunflower oil was reduced from 17.5% to 12.5%.
• Focus on affordability: The extension aims to ensure that edible oils remain available at the current affordable rates in the domestic market.

About the Molasses:

• The Molasses is a viscous byproduct obtained during the processing of sugarcane or sugar beets into sugar.
• Itis a major constituent of fine commercial brown sugar.
• It played a crucial role in the triangular trade during the colonial era, being a significant commodity in the exchange between Europe, Africa, and the Americas.
• Major Producers: Countries like Brazil, India, and Thailand are major producers of sugarcane molasses.
• Some countries heavily rely on molasses exports, contributing to their economic development.

Composition:

• Sucrose Content: Molasses contains sucrose, the sugar component, but in lower concentrations than refined sugar.
• Nutrients: It is a source of essential minerals such as iron, magnesium, and potassium.

Production Process:

• Extraction: Molasses is obtained through the extraction of sugar from sugarcane or sugar beets.
• Multiple Grades: There are different grades of molasses, such as light, dark, and blackstrap, depending on the extraction process and sugar content.

Applications:

• Molasses isused as a component in animal feed for its nutritional value.
• Fermentation of molasses is a key step in the production of alcoholic beverages and industrial alcohol.
• Molasses isemployed in the production of citric acid, yeast, and various other industrial products.
• Itis utilized in agriculture as a fertilizer due to its nutrient content.
• Itcan be used as a feedstock for biofuel production, contributing to sustainable energy initiatives.

Challenges:

• Molasses spills highlights the potential environmental hazards associated with molasses storage and transportation.
• Excessive consumption may pose health risks due to its high sugar content.

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