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Government places a 50% tax on molasses exports

Government places a 50% tax on molasses exports - The Hard News Daily
Government places a 50% tax on molasses exports – The Hard News Daily

January 16, 2019 (THND)—New Delhi Starting on January 18, the sugarcane by-product known as molasses will be subject to a 50% export levy imposed by the central government.Alcohol is made using molasses as an ingredient.

Aiming to reach its production target for ethanol (alcohol), which is mixed with gasoline to reduce vehicle emissions and used in the pharmaceutical industry to make medications, the government has decided to ensure appropriate quantities of the raw material are accessible.

The administration is anxious to avoid a scarcity of molasses and is concerned that domestic sugarcane production during the current harvesting season would fall short of expectations owing to the unpredictable monsoon.

As part of its biofuel program, the government is targeting a 20% ethanol mixed gasoline target, up from the current 12%, by 2025–26.

India accounts for around 25% of the world’s molasses commerce and is the leading exporter in this sector.

Karnataka, Maharashtra, and Gujarat are the three most important states for exports.

Molasses is mostly sold to Italy, South Korea, Vietnam, the Philippines, and the Netherlands.

 

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