In the new molasses policy for 2005-06, the Uttar Pradesh government has reserved 20 per cent of the total molasses produced by over 100 sugar mills for country liquor production. Only 10 per cent of total molasses produced in UP will be available for export. |
However, export of molasses to chemical units based in Uttaranchal will not be included under the "export" head. |
The new policy was approved by the Cabinet, which met here today. In a significant decision which will immensely benefit sugar mills, the Cabinet allowed free sale of unutilised molasses reserved for country liquor in 2004-05. |
The free sale of unutilised molasses has been allowed on condition that if need arises, sugar mills will compensate from the unreserved molasses stock for the next season, commencing next week. |
In the new policy for 2005-06, the unutilised stock of 20 per cent molasses for country liquor will be allotted to distilleries producing Indian Made Foreign Liquor (IMFL). Sugar mills with captive distilleries have been exempted from the 20 per cent reservation of molasses for country liquor. |
An administrative charge of Rs 11 per quintal will be charged on the consumption of molasses within the state and Rs 15 per quintal will be imposed on export. |
A duty of Rs 11 per quintal has been imposed on import of molasses. Under the new policy for 2005-06, the application by sugar mills for free sale of unutilised molasses reserved for country liquor will be entertained after August next year. The new policy shall remain effective until the 2006-07 policy is announced by the state government. |
In 2004-05, 45.46 lakh quintal molasses were tentatively reserved for country liquor against which off take by distilleries till September 30 was 44.97 lakh quintal. |
Thus a balance of 49,000 quintal will be disposed by the free sale route. A senior official of the excise department said 20 % of total molasses produced in UP came to 49.77 lakh quintal, which was reserved for the country liquor during 2004-05. |
The molasses year 2004-05 is ending and 4.31 lakh quintals was yet to be consumed by the distilleries and other chemical units. |
The official added that the new cane crushing season 2005-06, has commenced and over three dozen mills have started operation. To enable them to clean the molasses storage tanks for the fresh molasses, government has allowed them to dispose the product via free sale. |
Against the estimated of 200 lakh quintal of molasses production during 2004-05, the total production was approximately 240 lakh quintal. With the available balance of 11.31 lakh quintal, of 2003-04, total availability of molasses during 2004-05 is 249 lakh quintal. |
Of the total available molasses in UP, 163 lakh quintal was consumed within the state, 14 lakh quintal was exported to Uttaranchal and 0.48 lakh quintal was exported to other states. |
The state government in September last had amended the molasses policy for 2004-05, valid till October this year. The amendment, had allowed 10 per cent of molasses produced to be sent outside the state. |
Export of molasses was banned in November 2004, as the fall in sugarcane production was expected due to drought like condition prevailing in cane producing areas of West UP and Terai region of the state. |