Price of molasses spikes on cane shortage fears

PUNE: Prices of sugar cane byproducts such as molasses, alcohol and rectified spirit have increased by up to 50 per cent anticipating a shortage of the raw material in drought-hit Maharashtra and Karnataka.

Molasses, which is used in making alcohol and rectified spirit, is one of the main byproducts of sugar production. Its price has increased by 50 per cent in the last six weeks and 100 per cent in the last four months.

"Anticipating a shortage in production when the next, molasses prices have increased from Rs 4,000 per tonne to Rs 6,000 per tonne in the last six weeks," said CN Ahire, managing director, Sangli-based Sahyadri Sahakari Sakhar Karkhana.