Molasses market in Pakistan

Earlier Report Observations

The molasses market in Pakistan showed initial stability between 2018 and 2020, with volume fluctuating near 2.2 million tons. In 2018, a government directive tightened trade rules, requiring ethanol producers to purchase molasses directly from sugar mills, which supported domestic availability for biofuel production. A dip in market volume to 2.2 million tons in 2019 coincided with a significant drop in exports due to existing regulatory duties, though domestic production also eased. By 2020, the market saw a slight uptick to 2.2 million tons, influenced by growing demand from the ethanol and biofuel sectors.

A strong expansion phase began in 2021, with market volume jumping to 2.7 million tons as ethanol production gained prominence as an energy source, boosting domestic consumption. This trend accelerated in 2022, when the market peaked at 3.3 million tons. Production that year crossed 3 million tons, and advocacy by the Pakistan Ethanol Manufacturers Association helped secure molasses supplies for distilleries, further elevating local demand.

In 2023, the market volume retracted to 3.0 million tons, reflecting a decrease in production. During the year, the regulatory duty on molasses exports was raised from 10% to 15%, which further constrained overseas shipments.

Production molasses in Pakistan

In kind, 2017-2020, K t

From 2017 to 2020, Pakistan ranked fifth globally in molasses production volume.

Top producers of molasses, 2017-2020

World map of production of molasses, 2017-2020

Pakistan's molasses production increased after a two-year decline. In 2020, production reached 2 237 K t, remaining virtually unchanged from 2019. Over the 2017-2020 period, production decreased by 24.3%, which translates to an annualized decline of 8.8%. The lowest production was recorded in 2019 at 2 235 K t, while the largest annual decline occurred in 2018 at 16.7%.

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

In value, 2017-2020, M $ US

Pakistan's molasses production value increased for the second consecutive year. In 2020, output was valued at 324.0 M $ US, representing a robust rise of 21.3% compared to the previous year. However, over the 2017-2020 period, production value decreased by 9.5%, with a compound annual growth rate (CAGR) of -3.3%. The lowest value was recorded in 2018 at 239.7 M $ US, which also saw the largest annual decline of 33.1%.

Annual dynamics of production in Pakistan in value, 2017-2020, M $ US

Exports molasses from Pakistan

Exports in kind, K t

The market showed volatility during the observed period. Exports peaked in 2018 at 170.3 K t and reached their lowest point in 2020 at 35.3 K t, representing a 4.8-fold difference. In 2020, Pakistan exported 35.3 K t of molasses, down 20.6% from the previous year. The largest annual decline occurred in 2019 at 73.8%, while the largest increase was recorded in 2018 at 5.3%.

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

From 2017 to 2020, the Netherlands (33.0% of exports in kind), Saudi Arabia (22.7%), and the United Kingdom (18.2%) were the main markets for Pakistan's molasses exports, together accounting for 73.8% of total export volume.

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

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

Exports in value, K $ US

Pakistan's molasses export value declined for the third consecutive year. In 2020, exports totaled 5 121 K $ US, marking a moderate contraction of 3.8% from 2019. Over the 2017-2020 period, export value decreased by 73.9%, equating to an annualized decline of 36.1%.

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

From 2017 to 2020, the leading destinations for Pakistan's molasses exports in value terms were the Netherlands (34.7% of export value), Saudi Arabia (22.4%), and the United Kingdom (18.0%), which together accounted for 75.1% of total export value.

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

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

Imports molasses to Pakistan

Imports in kind, K t

There were noticeable fluctuations in import volumes during this period. The highest volume was observed in 2020, while the lowest occurred in 2018, with a peak-to-trough ratio of 33 times. In 2020, Pakistan imported 0.0 K t of molasses, which was 267.1% higher than the previous year. The minimum value was recorded in 2018 at 0.0 K t. The largest annual decline occurred in 2018 at 94.8%, while the largest increase was recorded in 2019 at 812.0%.

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

From 2017 to 2020, the United Kingdom and Vietnam were the leading sources for Pakistan's molasses imports in kind, together accounting for 97.1% of total import volume, with the remaining share distributed among other countries.

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

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

Imports in value, K $ US

The market exhibited an unstable trend throughout this timeframe. Imports peaked in 2020 and reached their lowest point in 2018, with a 14.3-fold difference between these years. In 2020, Pakistan's molasses imports totaled 24 K $ US, marking a sharp increase of 217.4% from 2019. The minimum value was recorded in 2018 at 2 K $ US. The largest annual decline occurred in 2018 at 29.6%, while the largest increase was recorded in 2019 at 351.5%.

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

Throughout 2017-2020, the United Kingdom dominated the geographical structure of Pakistan's molasses imports in value terms, accounting for 90.0% of total import value.

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

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