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  MOLASSES: AN IMPORTANT BI-PRODUCT

The company feels that the more the extent of diversification of product base, the less will the reliance be, of the industry on domestic prices of sugar. This justifies the importance it attaches to the bi-products including molasses. Molasses, an important bi-product of the sugar industry, is used extensively for the manufacture of ethyl alcohol and alcohol based down stream chemicals in addition to manufacture of potable alcohol.

It is the only by-product obtained in the preparation of sugar through repeated crystallization. The yield of molasses per ton of sugarcane varies in the range of 4.5% to 5%. It contains nearly 45% un-crystallised, fermentable Sugar & some Sucrose. It is also used as food for farm animals & in the manufacture of several processed tobaccos.

Increase in the production and quality of molasses is obviously going to reflect in the increased production of industrial alcohol, which is another thrust area for Dwarikesh. The company already has a distillery with a daily production capacity of 30 Kilolitres and may very soon enter into the production of Indian Made Foreign Liquor (IMFL).

The state government controls the export of molasses through export licenses issued every quarter. Molasses and alcohol-based industries were decontrolled in 1993 and are now being controlled by respective state government polices. Nearly 70% of molasses produced is consumed by the industrial alcohol manufacturers and the remaining 30% is consumed by the potable alcohol sector.
 
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