UP Molasses policy 2020-21 Announced | Download Now

In a bid to ensure timely payment of their produce to cane growers, the state cabinet on Friday approved the molasses policy to pave way for tagging of sale of ethanol and molasses. The move would allow the state government to keep a close tab on sale of ethanol and passing of its proceeds to farmers.

Source : Sugar Times | 31 Oct, 2020 | 05:59 PM

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See the source imageTo ensure uninterrupted availability of molasses to the distilleries producing ethanol, molasses based units and to the potable distilleries making country liquor, the molasses policy 2020-21 has been approved by the Uttar Pradesh cabinet which met here on Friday.

“The proceeds from the sale of ethanol and molasses have been tagged for the payment to sugarcane farmers,” the spokesman said. He said that ethanol production from B-heavy molasses is being encouraged in the state. Only two sugar mills in the state were producing ethanol from B-Heavy molasses in the year 2018-19. At present 26 sugar mills are producing ethanol from B-heavy molasses and the production of B heavy molasses in the state has increased almost 10 times. Ethanol production from Cane Juice is also being promoted by the state government.

The spokesman said that the government has suggested improvement in the quality of country liquor as it is consumed by the low income group of the society. “It is necessary to make quality country liquor available at affordable prices to this section of population, in the absence of which, there is a possibility of loss of human life due to consumption of illicit liquor. Besides, the revenue from country liquor being significant, it is necessary to ensure availability of molasses to all the country liquor making distilleries,” he said During the molasses year 2020-21, the estimated production of molasses is 533.50 lakh quintals.

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The estimated requirement of molasses for country liquor is 96.77 lakh quintals. To ensure availability of adequate molasses for Country liquor, 18 percent of molasses being produced will be reserved for country liquor during the molasses year 2020-21. The cabinet has allowed the authority for allocation of molasses upto one lakh Quintals of molasses to cattle feed and other molasses based units in the state has been delegated to Excise Commissioner.

Earlier the allocation was done with the approval of the Excise Minister. Besides, the cabinet has allowed disposal of below grade molasses accumulated in the sugar mills through both end consumers and traders. To ensure equitable prices for molasses, export of molasses to other states and countries shall be continued, the spokesman said adding that in order to promote investment in the State, the Sugar complexes which produce Ethanol from Cane Juice shall be exempted from the obligation of supplying of reserved molasses for 3 years.