Provision made to reserve 18 percent of the estimated 500 lakh quintals of molasses


Lucknow: Country made liquor is usually consumed by the low income class. To ensure public health, it is necessary in public interest to make available to this class, legal country made liquor of good quality and standard at cheaper rates, as there is a risk of loss of life in case of consuming illicit liquor on unavailability of legal liquor at cheaper rates. A provision has been made, for country made liquor, to reserve 18 percent of the estimated 500 lakh quintals of molasses to be produced in the molasses year 2019-20. After sugar mills getting functional, reservation percentage could be changed as per the requirement of liquor and availability of molasses at that time.

Liability of the reserved molasses has been fixed equally on all sugar mills on the basis of total production of molasses. Group sugar mills could supply the payable reserved percentage of molasses as above from one or more sugar mills of the group. This facility will be stopped with immediate effect on interrupted supply of country made liquor.
In view of the geographical condition of the distilleries located in Purvanchal, it will be mandatory for the group of these distilleries to supply reserved molasses from at least one sugar mill located in Purvanchal.

Each sugar mill will upload a tender till 07 of every month on the online portal of molasses for selling estimated reserved and unreserved molasses. Sugar mill groups will have to ensure supply of at least 06 percent of its total annual reserve to be fed each month. Sugar mills may be given relaxation in the above condition to avoid overflow of molasses during the crushing season.

If country liquor manufacturing distilleries obtain ENA (Extra Neutral Alcohol) from other distilleries, mixed and industrial distilleries, immediately after the supply of the entire quantity of such ENA, the equivalent reserve molasses will be added to the reserve molasses quota of the supply unit and the amount of reserved molasses will decrease from the recipient units.

After getting registration done in the department, small scale industrial units, buyer units and traders would be able to purchase below grade molasses only on submitting an affidavit along with GSTN details. Up to 500 quintals of below grade molasses could be purchased by the traders and more than 500 quintals of below grade molasses will be purchased by consumer units themselves.

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