UP, one of India’s leading sugarcane producers and home to a thriving sugar industry, has released its revised Molasses Policy for the year 2023-24.
The Yogi cabinet approved a new molasses policy, allocating 19% molasses to distilleries producing country liquor, aligning with regulatory changes in the state.
Key Takeaways from New Molasses Policy:
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In-Depth Look at the Policy Changes and Their Impact on the Sugar Industry:
Molasses Duration and Continuity:
One of the most significant aspects of Uttar Pradesh’s Molasses Policy is its duration. The policy will remain in effect until a new Molasses Policy is officially declared. This move ensures stability and predictability for the sugar industry, as it avoids frequent policy changes that could disrupt business operations and planning.
This continuity is essential for sugar mills, which need to maintain steady supplies and processing schedules. For farmers, it offers a sense of assurance that their sugarcane crop will find buyers, promoting economic stability in the state.
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Molasses Transportation and Environmental Impact:
The policy underscores the use of DigiLock and GPS-equipped tankers for molasses transportation. This is a significant step toward ensuring the safe and environmentally responsible movement of molasses. The requirement for GPS tracking helps prevent unauthorized diversions and ensures that the molasses reach their intended destinations without contamination or environmental harm.
Uttar Pradesh has faced environmental challenges related to molasses leakage in the past. The move to implement GPS-equipped tankers aims to mitigate these issues and safeguard the state’s water resources. Furthermore, it can help reduce the ecological and health consequences of molasses spills and pollution.
Industrial Units Based on Molasses:
An interesting and impactful aspect of the revised policy is the authority granted to the Excise Commissioner to determine the annual demand for molasses for the establishment of new industrial units based on molasses for the fiscal year 2022-23. This decision-making power can significantly influence the expansion of industries relying on molasses, leading to both economic growth and potential environmental concerns.
The establishment of new industrial units can create jobs and stimulate local economies, but it must be managed carefully to ensure that environmental regulations are upheld. This development showcases the government’s effort to balance economic growth with environmental sustainability.
Stringent Quality Control:
Maintaining the quality of liquid substances produced by sugar mills is a key concern addressed in the revised Molasses Policy. Regular monitoring of the quality of liquid substances ensures that they meet industry standards and conform to pollution control regulations. This commitment to quality control helps protect consumers and the environment.
Adherence to Environmental Regulations:
Another noteworthy feature of the policy is its requirement for all sugar mills to adhere to the provisions of the Water (Prevention and Control of Pollution) Act, 1974, and relevant regulations. By imposing strict adherence to environmental regulations, the government aims to minimize pollution and prevent contamination caused by sugar mill operations.
This approach aligns with the global trend of prioritizing environmental responsibility in industrial activities. It also addresses concerns raised by environmentalists and the public regarding pollution and its effects on health and the ecosystem.
Consultants for Project Monitoring:
The establishment of a Project Monitoring Unit (PMU) under the Operational Research and Training (ORT) Policy is a proactive move to ensure that policy initiatives are effectively implemented. This unit consists of two computer programmers and two consultants hired through outsourcing, with their salaries funded by government departments.
The presence of a PMU is expected to enhance transparency and accountability in the implementation of ORT policies and molasses accounting. It will play a crucial role in tracking and reporting the progress and outcomes of various policy measures. The addition of consultants brings a valuable external perspective and expertise to the monitoring and evaluation processes, which can lead to more effective policy implementation.
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Public and Industry Reactions to the Revised Molasses Policy:
The release of the revised Molasses Policy has elicited reactions from various quarters, including sugar mill owners, farmers, environmentalists, and policymakers.
Sugar Mill Owners:
Sugar mill owners, while welcoming the policy’s continuity, have expressed concerns about the added financial burden of the INR 5000 processing fee for molasses tank conversion. Some mill owners have called for clarity and support from the government to ensure a smooth transition without hampering their operations.
Molasses Reservation for CL Production:
The sugar mills would provide 19% of total production of molasses in term of B-Heavy molasses for country liquor production. Whether the sugar mills would provide B Heavy molasses, supply in C heavy quantity for the B heavy to C heavy molasses formula has given in policy.
example/formula| S.No. | Category of Produced Molasses Volume (in Qtl.) | Total Production of Molasses (in Qtl.) | Calculation of Reserve Molasses |
|---|---|---|---|
| Case 1 | (1) B-Heavy - 50 (2) C-Heavy - 50 | 100 | 19 qtl. B-Heavy molasses or C-Heavy molasses EQUAL TO 19qtl. B-Heavy molasses |
| Case 2 | (1) B-Heavy - 100 (2) C-Heavy - 0 | 100 | 19 qtl. B-Heavy molasses or C-Heavy molasses EQUAL TO 19qtl. B-Heavy molasses or EQUAL TO ENA |
| Case 3 | (1) B-Heavy - 0 (2) C-Heavy - 100 | 100 | 19 qtl. B-Heavy molasses or C-Heavy molasses EQUAL TO 19qtl. B-Heavy molasses or EQUAL TO ENA |
Farmers:
Sugarcane farmers have largely welcomed the policy’s duration, as it provides a stable market for their produce. A predictable and continuous policy framework ensures that their hard work is rewarded with assured sales to sugar mills.
Environmentalists:
Environmental activists have applauded the introduction of GPS-equipped tankers and the requirement for sugar mills to adhere to pollution control regulations. They see these measures as a positive step toward mitigating environmental damage caused by molasses transportation and operations.
Policymakers:
Policymakers and government officials have stressed the importance of environmental sustainability and the need for a balance between industrial growth and ecological responsibility. They have reiterated the government’s commitment to adhering to environmental regulations and reducing the impact of sugar mill operations on the environment.
Overall, the release of UP’s new Molasses Policy for 2023-24 carries substantial implications for the state’s sugar industry, farmers, and the environment. The policy’s emphasis on continuity, environmental responsibility, and adherence to regulations is poised to shape the future of the sugar industry in the region. It signifies a commitment to sustainable growth while addressing the concerns of multiple stakeholders.
The introduction of GPS technology and the establishment of a Project Monitoring Unit exemplify the government’s dedication to responsible governance and informed policy implementation. Uttar Pradesh’s sugar industry and its allied sectors are now set on a path that balances economic prosperity with ecological consciousness.
