Lucknow, Sept. 18 -- The Uttar Pradesh government's move to hike the reserved quota of molasses from 12.5% to 16% for countrymade liquor has left the sugar industry dismayed. Private sugar millers have expressed concern over hike in the reserved quota, claiming it will not only impact their cash flow but also squeeze free availability of molasses towards ethanol making for mixing in petrol to that extent. Against the prevailing molasses market price of Rs 480-500 per quintal, the state distilleries lift their reserved quota at a controlled rate of Rs 70 per quintal, thus paying only 15% of the market rate.
The government has hiked the reserved quota to maintain adequate supply of molasses for distilleries to produce country liquor. The mov...