UP opens Rs 500 crore revenue stream for beleaguered sugar mills

The Uttar Pradesh government has opened an additional revenue stream of more than Rs 500 crore annually for sugar mills by deciding to fix floor price of molasses sold to distillers under the levy scheme.

Molasses, a sugarcane byproduct, is extracted during the process of sugar production and is used by distillers in the manufacturing of country liquor. Under levy, UP sugar mills are obligated to supply 12.5 per cent of their molasses stock to distillers/country liquor manufacturers.

“Last year, the distillers in UP had lifted levy molasses practically for free or against a very nominal price. This year, distillers were