Abolish molasses quota for distilleries: UP sugar mills

Lucknow: Private sugar millers from Uttar Pradesh have urged the government to abolish the system of reserving molasses for state distilleries producing country liquor as the factories are saddled with 13 million tonnes inventory of molasses before the commencement of crushing season 2019-2020.

The millers have written a letter to state government objecting the reservation of molasses stating that it plays a vital role to pay cane arrears from the revenue generated by byproduct.

Uttar Pradesh government recently hiked the molasses quota from 12.5 per to 16 per cent for country liquor due to scarcity in production of the byproduct from an estimated 5.5 MT to around 4.8 MT during 2018-19. Sugar mills in the state expressed concern over this hike in the reserved quota. They claim that it will hamper the cash flow and will also clutch free availability of molasses towards ethanol making.

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