With over two million tonnes of surplus molasses, Sugar mills in Uttar Pradesh are looking at non-traditional markets for remunerative disposal.

Mills in UP are looking at non-traditional but high demand markets of Andhra Pradesh and Tamil Nadu for selling molasses; distilleries there needs raw material to produce potable alcohol. These southern states have been facing a cane deficit for years, due to uneven distribution of monsoon rain.

Molasses is a major source of countrymade liquor. Its price in the north has declined by 45% to Rs 2,500 a tonne, from Rs 4,500 a tonne at the beginning of the cane crushing season, three weeks earlier. In the south, the price continues to remain at Rs 4,200-4,500 a tonne.

Sugarcane output in UP is estimated to increase by 15-20% this year from last year to around 210 million tonnes; last year was around 182.5 million tonnes. Molasses availability this year is forecast to remain at 4.6 million tonnes, with local consumption at 2.5-2.6 million tonnes.