Ethanol hike: Decontrol of molasses by UP holds key for optimum benefit

In the current season 2017-18, the total production of molasses stood at over 5.32 million tonnes

Uttar Pradesh, the country's top sugarcane and sugar producer, is unlikely to optimally capitalise on ethanol price hike unless the Yogi Adityanath government decontrolled the sale of molasses. 

Recently, the Centre had announced hike in the ex-mill price of ethanol derived out of 'C' heavy (final) molasses by almost Rs 3/litre to Rs 43.70/litre for the next contract period starting December 2018. Besides, for the first time, the Centre had decided to encourage production of ethanol, for blending with petrol, directly from sugarcane juice and ‘B’ heavy molasses by fixing a higher price of almost Rs 4/litre above the price