LUCKNOW, Oct. 30 -- The Uttar Pradesh Molasses Policy 2025-26 has raised the quarterly molasses supply target for sugar mills from 19% to 25%, making it mandatory for mills to release one-fourth of their reserved molasses every quarter for country liquor production. For the fiscal year 2024-25, the state government had allocated 19% of molasses. The policy aims to ensure a steady supply of raw material to distilleries that contribute nearly 48.5% of the state's excise revenue, officials said.

The period from November 1 of each year to October 31 of the following year is considered the molasses year.

The policy was formulated under the guidance of minister of state (Independent Charge) for excise and prohibition Nitin Agarwal. Officials ...