UP increases molasses quota for distilleries; sugar mills disappointed

UP sugar mills have long been demanding the state government to abolish the system of reserving molasses for distilleries

Uttar Pradesh government has hiked the molasses reserved quota from 12.5% to 16% for the state manufacturers of country made liquor.

The decision was taken to maintain adequate supply of molasses for distilleries to produce country made liquor in the backdrop of shortfall in molasses production from the estimated about 5.5 million tonnes (MT) to about 4.7 MT this year, UP sugarcane commissioner Sanjay Bhoosreddy told Business Standard.

However, the private sugar millers have expressed concern over this hike in the reserved quota claiming it would not only impact their cash flow but also squeeze free availability of molasses towards