The central government has imposed a 50 per cent export duty on the export of molasses, with effect from January 18.
New Delhi: In a move to control the exports and therefore the prices of molasses, a by-product of sugarcane, Centre has imposed a 50 per cent export duty on its exports with effect from January 18. It should also be noted that molasses is used as an input for producing alcohol. The government’s decision is aimed at ensuring that adequate supplies of the raw material are available to meet the nation’s production target for ethanol (alcohol), which is blended with petrol. The blending of ethanol is done so as to decrease the amount of pollutants that a vehicle emits, as per a report by the news agency IANS.
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Fears Of Domestic Sugarcane Crops Falling Below Target
There are fears that the domestic sugarcane output in the ongoing harvesting season may fall below the targeted level due to the erratic monsoon and the government is keen to prevent any shortage of molasses in the country.
The government aims to achieve its E20 (20 per cent ethanol blended petrol) target by 2025–26 from the 12 per cent level at present as part of promoting its biofuel policy. India is the world’s largest molasses exporter and contributes about 25 per cent to global trade. The major exporting states are Maharashtra, Gujarat, and Karnataka. The main countries to which molasses is exported include the Netherlands, the Philippines, Vietnam, South Korea and Italy.
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India’s Merchandise Exports Rose 1% in December 2023
India’s merchandise exports registered a 0.96 per cent growth in December 2023 at $38.45 billion compared to $38.08 billion in the same month of the preceding year 2022, while imports fell during the month, according to official figures released by the Commerce Ministry on Monday.
Commerce Secretary Sunil Barthwal said that despite a global slowdown, the country is “in the positive zone”.
The overall trade deficit narrowed during the month to $5.17 billion, up from $7.75 billion in December 2022. Major contributors to export growth in December 2023 include engineering goods, iron ore, gems & jewellery, electronic goods and drugs & pharmaceuticals.
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Engineering goods exports recorded an increase of 10.19 per cent at $10.04 billion in December; gems and jewellery exports went up by 14.07 per cent to $2.90 while electronic goods exports registered an increase of 14.41 per cent.
Exports of drugs and pharmaceutical products rose 9.3 per cent during the month to $2.47 billion. This is also the highest monthly export for these four commodity groups during the current financial year so far.
Agricultural exports continue to grow in December 2023 — tobacco (38.94 per cent), meat, dairy & poultry products (29.76 per cent), spices (27.68 per cent), fruits & vegetables (25.36 per cent), cereal Preparations & Miscellaneous Processed Items (13.5 per cent) and oil seeds (8.48 per cent).
Overall trade deficit during April-December improved by 35.87 per cent from $108.13 billion in 2022 to $69.34 billion in 2023. The merchandise trade deficit also improved by 11.45 percent from $212.34 billion in April–December 2022 to $188.02 billion in April–December 2023.
(With inputs from agencies)
