Levy of Export Duty on Molasses Exports

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....t duty of 50% on exports of Molasses (HS 1703). The Indian Government's recent decision to impose a 50% export duty on molasses is primarily aimed at boosting the domestic availability of molasses for ethanol production. This move is part of the government's larger initiative to increase the ethanol content in petrol, with a target of achieving 20% ethanol-blended petrol by 2025-26, up fr....

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....ing Sugar Shortage: The policy also responds to a sugar shortage for local consumption, which has led to high sugar prices. This shortage is partly attributed to erratic monsoon rains affecting sugarcane yield​​. * Reducing Import Bills: By increasing the ethanol blend in petrol, the government intends to decrease the country's import fuel bill, thereby saving on foreign exchange....

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....ng more on ethanol production from molasses. * Global Trade Alterations: India's significant share in the global molasses market means this duty could alter global supply chains and pricing. Conclusion The Indian Government's decision to levy a 50% export duty on molasses underlines its commitment to increasing ethanol blending in petrol, aiming for economic and environmental benefits.....