Molasses market in India

Earlier Report Observations

The molasses market volume in India fluctuated between 2018 and 2023, starting at 13 572 thousand tonnes before a moderate decline to 13 276 thousand tonnes in 2019. A sharp contraction followed in 2020, reducing the market to 10 390 thousand tonnes. A steady recovery phase began thereafter, with the market growing to 10 779 thousand tonnes in 2021, then to 12 683 thousand tonnes in 2022, and reaching 13 247 thousand tonnes by 2023.

In 2024, the government enacted a significant policy shift by imposing a 50% export duty on molasses from January 18. This measure was designed to retain domestic supply for ethanol production, directly supporting India's ambitious ethanol blending targets under the National Policy on Biofuels. The policy change reflected a strategic priority to use molasses as a feedstock for ethanol amid efforts to balance sugar production and energy security.

Production molasses in India

In kind, 2017-2020, K t

From 2017 to 2020, India held the second position globally in molasses production.

Top producers of molasses, 2017-2020

World map of production of molasses, 2017-2020

After two years of growth, molasses production in India saw a decline. In 2020, India produced 11 125 thousand tonnes of molasses, which was down 21.1% from the previous year. Over the 2017-2020 period, production increased by 23.3%, with a compound annual growth rate of 7.2%. The highest production level was recorded in 2019 at 14 100 thousand tonnes, while the largest year-on-year increase occurred in 2018 at 55.8%.

Annual dynamics of production in India in kind, 2017-2020, K t

Exports molasses from India

Exports in kind, K t

The data shows irregular changes, pointing to a volatile market environment. Import levels varied significantly, with an 11.7-fold difference between the low in 2017 and the high in 2019. In 2020, India's molasses exports amounted to 737.1 thousand tonnes, marking a notable decline of 13.4% from the previous year. The peak export volume was recorded in 2019 at 851.5 thousand tonnes, and the largest increase happened in 2018 with a jump of 586.9%.

Annual dynamics of product's exports from India in kind, 2017-2020, K t

Between 2017 and 2020, the Netherlands, South Korea, and the Philippines were the main buyers of Indian molasses, accounting for 29.5%, 20.0%, and 11.7% of exports in volume, respectively. Together, these three countries made up 61.1% of India's total molasses exports by volume.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from India in kind, 2017-2020

Exports in value, M $ US

Molasses exports from India increased for the third year in a row. In 2020, exports reached 102.1 million US dollars, up 9.2% from the year before. Over the 2017-2020 period, exports grew by 859.2%, with a compound annual growth rate of 112.5%.

Annual dynamics of product's exports from India in value, 2017-2020, M $ US

From 2017 to 2020, the Netherlands, South Korea, and the Philippines contributed the most to India's molasses exports in value terms, with shares of 27.9%, 21.1%, and 12.6%, respectively. Combined, these three countries accounted for 61.6% of the total export value.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from India in value, 2017-2020

Imports molasses to India

Imports in kind, K t

Market behavior during these years was marked by volatility. Imports fluctuated widely, with a 23-fold difference between the peak in 2017 and the trough in 2020. In 2020, India's molasses imports stood at 2.5 thousand tonnes, down 91.0% from the previous year. The largest increase was recorded in 2019 at 151.6%.

Annual dynamics of product's imports to India in kind, 2017-2020, K t

From 2017 to 2020, Nepal, the United Arab Emirates, and Indonesia were the principal suppliers of molasses to India, making up 47.8%, 20.8%, and 18.7% of imports by volume, respectively. Together, these three countries accounted for 87.3% of India's total molasses imports in volume.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to India in kind, 2017-2020

Imports in value, M $ US

The data reveals irregular changes, indicating a volatile market environment. Imports varied dramatically, with a 50-fold gap between the highest level in 2017 and the lowest in 2020. In 2020, India imported 0.2 million US dollars worth of molasses, showing a sharp drop of 86.9% compared to 2019. The largest increase occurred in 2019 at 3.3%.

Annual dynamics of product's imports to India in value, 2017-2020, M $ US

Throughout 2017-2020, the United Arab Emirates, Nepal, and Indonesia were the key partners in India's molasses imports by value, with shares of 30.9%, 26.1%, and 25.0%, respectively. Together, these three countries accounted for 82.0% of the total import value.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to India in value, 2017-2020