Why in news?
The Government of India has allowed the export of 1.5 million tonnes of sugar during the 2025โ26 season and removed a 50 percent duty on molasses exports. The decision comes amid expectations of a bumper sugar harvest and aims to manage surplus stock while supporting sugarcane farmers. Lower export duties will make Indian molasses more competitive in global markets.
Background
Molasses is a thick, dark syrup produced during the extraction of sugar from sugarcane or sugar beet. When sugarcane is crushed, the juice is boiled to crystallise sugar, leaving behind a viscous liquid. Repeated boiling yields different types:
- Light molasses: Obtained after the first boiling and has the mildest flavour; used in baking and sauces.
- Dark molasses: Produced from the second boiling; thicker and less sweet, often used in gingerbread and savoury dishes.
- Blackstrap molasses: Resulting from a third boiling; thick, bitter and rich in minerals such as iron, calcium and potassium; used as a dietary supplement and in animal feed.
Molasses can be unsulfured, meaning no sulfur dioxide is added, or sulfured, which contains sulfur dioxide as a preservative. In India most molasses comes from sugarcane and is used to make ethanol, rum, cattle feed and baked goods.
Reasons for policy change
- High sugar production: Estimates suggest that sugar output will exceed domestic demand (about 34 million tonnes produced versus 28.5 million tonnes consumed). Diverting some sugar and molasses for export helps avoid a glut.
- Support for farmers: Removing the export duty can improve prices and earnings for sugar mills and farmers, particularly in states like Karnataka and Maharashtra.
- Ethanol diversification: With less sugar being diverted to ethanol production than expected, there is surplus molasses available for export or other uses.
- Global demand: Molasses is used worldwide in food processing, brewing, livestock feed and industrial fermentation. Competitive pricing may expand Indian market share.
Uses of molasses
- Food and beverage: Adds flavour and colour to baked goods, confectionery, sauces, marinades and beverages like rum.
- Ethanol and biofuel: Fermentation of molasses produces ethanol, which can be blended with petrol as a biofuel and used in alcoholic beverages.
- Animal feed: Blackstrap molasses is mixed into cattle feed to improve palatability and provide minerals.
- Industrial products: Used in the production of yeast, citric acid, acetic acid and other chemicals.
Conclusion
By reducing export restrictions on molasses, India hopes to stabilise domestic sugar prices, provide relief to farmers and tap into overseas demand. Understanding the varied types and uses of molasses helps appreciate its role beyond being a byโproduct of sugar production.
Sources: Economic Times, Medical News Today