The state government has declared molasses policy for the molasses year 2021-22. On Thursday, the cabinet approved the proposal brought in this regard by the Excise Department. According to this proposal, sugar mills of the state will have to reserve 18 percent of their total molasses production for distilleries producing country liquor.
This reserved molasses is made available to these distilleries at reduced rates fixed by the government. The remaining molasses is sold by sugar mills in the open market at expensive rates.
This information has been given by Sanjay Bhoosreddy, Additional Chief Secretary, Excise Department. He said that in the molasses year 2021-22, against the estimated production of 570 lakh quintals, the requirement of reserve molasses for country liquor has been estimated at 117.32 lakh quintals. Therefore, it has been decided to reserve 18 per cent molasses to provide adequate quantity of molasses to the distilleries producing country liquor.
Also, the ratio of annual withdrawal between reserved and unreserved molasses has been fixed at 1:4.55. After the start of operation of sugar mills, according to the conditions and requirement, according to the availability of molasses and the requirement of country liquor, the percentage of reservation can also be changed. He informed that out of the total excise revenue received by the State Government, fifty percent amount comes from the sale of country liquor.
Cabinet decision letter
