Government decision
Molasses and India’s Export Duty Removal: The Union Government has decided to remove the 50% export duty on molasses, providing a major relief to the sugar and distillery sectors. This move is expected to enhance India’s ethanol production capacity, boost exports, and improve liquidity for sugar mills. The decision aligns with India’s broader aim to promote biofuel-based energy and reduce dependency on imported crude oil.
Static GK fact: India is the second-largest producer of sugar in the world after Brazil.
Understanding molasses
Molasses is a thick, dark brown byproduct obtained during the refining of sugarcane or sugar beet into sugar. It consists mainly of sucrose, glucose, and fructose, along with minerals like calcium, iron, and magnesium. Depending on its sugar content, molasses can be classified into light, dark, and blackstrap types.
The substance is also called “exhausted honey” or “poor honey” in some regions, owing to its appearance and texture.
Static GK Tip: The word “molasses” originates from the Portuguese word melaco, meaning syrup.
Economic importance
The removal of export duty is expected to encourage molasses trade, especially to countries with high demand for ethanol and feedstock. This policy reform will also help reduce surplus stock in sugar mills and provide additional income to farmers through better procurement rates.
Moreover, this move supports India’s Ethanol Blending Programme (EBP), which targets 20% ethanol blending in petrol by 2025. Molasses-based ethanol production plays a vital role in achieving this renewable energy goal.
Static GK fact: Ethanol is produced in India mainly from C-heavy molasses, B-heavy molasses, and sugarcane juice.
Key applications
Molasses serves as a critical raw material in multiple industries. It is used for beverage production, ethanol and alcohol manufacturing, and as a component in fertilizers and animal feed. In the distillery sector, it forms the base for industrial alcohol and rectified spirit.
Additionally, molasses is used in the production of citric acid, yeast, and certain pharmaceutical products due to its high nutrient value.
Static GK Tip: India’s top molasses-producing states include Uttar Pradesh, Maharashtra, and Karnataka.
Global trade outlook
With the export duty lifted, India may witness a significant rise in molasses exports, particularly to Southeast Asia and Africa, where demand for ethanol-based fuels is growing. The policy could also strengthen India’s presence in the global biofuel market, aligning with the country’s commitment to sustainable energy transition.
Static Usthadian Current Affairs Table
Molasses and India’s Export Duty Removal:
| Topic | Detail |
| Product | Molasses (byproduct of sugar refining) |
| Source | Sugarcane and sugar beet |
| Key Nutrients | Calcium, Iron, Magnesium, Potassium |
| Main Uses | Ethanol, beverages, fertilizers, animal feed |
| Export Duty Change | 50% duty removed by Union Government |
| Related Policy | Ethanol Blending Programme (20% target by 2025) |
| Top Producing States | Uttar Pradesh, Maharashtra, Karnataka |
| India’s Global Rank in Sugar Production | Second after Brazil |
| Origin of Word | From Portuguese word melaco |
| Key Sector Benefited | Sugar and distillery industries |
