Sugarcane byproduct market faces tough time

Molasses, by-product obtained while preparing sugar from sugarcane by repeated crystilisation, is facing a tough time with ban on export in Gujarat.

The yield of molasses per ton of sugarcane varies in the range of 3.5 to 4.5 per cent. Nearly, 70 per cent of molasses are consumed by industries manufacturing alcohol and remaining 30 per cent by portable alcohol sectors.

Molasses is used to manufacture ethanol, yeast and cattle field. Ethanol is then used to produce portable liquor and chemicals like acetone, acetic acid, butonol, acetic anhydride, MEG, etc. Some of the alcohol based chemicals like MEG, acetic acid, acetone, face stiff competition from production through the petro-chemicals products.

Shree Valsad sugar Cooperative Society chairman Arvind Patel said, "Earlier, the central government used to control the export of molasses through export licenses issued for every quarter. But after the decontrol of molasses and alcohol based industries in 1993, the distribution was handed over to the Industries Commissioner (IC) who decides the quantity of molasses to be exported outside the state."

Owing to the restriction on the export of molasses, many a times we have to bear losses by selling away the by-products at low price even if the overall cost of molasses is more in other states. This restriction is only levied in Gujarat, he added.

Describing similar hurdles, R D Patel, Chairman of Bardoli Sugar factory said, "We have to take permission from the IC every time before exporting molasses outside the state. The IC then after investigating and looking at all the required parameters, permit the export."

Talking about quantity of molasses produced, he said, "The production is not fixed as it depends completely on climatic conditions. If the production of sugacane is more one season, the byproduct will also increase. In such condition, we have to dispose off the byproduct." Usually molasses are sold is at around Rs 2,000 to Rs 25,00 per tonne. Last month we had produced 80,000 tonne of molasses.

Patel further said, "We keep urging the state government from time to time to take necessary steps in this connection, but till date we haven't received any response."

Sources in a sugarcane industry said that first priority in molasses sale is given to the local industries in Gujarat and than the excess quantity is permitted to be sold outside the state.Usually 3 lakh tonne of byproduct is consumed by the local industries every year, sources added.

A typical cane complex of 3000 tcd capacity can produce 345 tonne of sugar, 6,000 ltr alcohol, 3 tonne yeast, 1.5 tonne potash fretilisers, 25 tonne pulp, 15 tonn wax, 150 tonne press-mud fertiliser and 750 KW of bagasse, fibrous residue of cane stalk.