India may impose 50% export duty on molasses

A shortage in sugar supplies for domestic consumption has spiked the prices of the sweetener to a 14-year high

- Puja Das

The government is considering a 50% duty on the export of molasses. The idea is to ensure enough supplies to meet the target for cleaner and more efficient ethanol-blended petrol, two officials aware of the matter said on the condition of anonymity.

India is the world's largest molasses exporter, contributing about 25% to global trade. The country doesn't currently levy an export duty on molasses, a by-product of the process of refining sugarcane into sugar, and a key ingredient in the production of ethanol, a biofuel.

The government, though, has been considering the levy to discourage exports to ensure adequate molasses in the country, given the shortage of sugarcane following erratic monsoon rains.