Molasses market in Sri Lanka

Earlier Report Observations

Molasses production in Sri Lanka, closely linked to the state-run sugar industry, held steady at around 25 000 t in 2018 and 2019. Output then dropped to 21 303 t in 2020, a year in which the government allowed molasses imports for its sugar companies to sustain local ethanol output despite broader import restrictions.

A sharp recovery followed, with production rising to 30 599 t by 2022. This expansion was primarily driven by a government ban on ethanol imports, which bolstered domestic ethanol production from molasses, alongside continued policy efforts to increase local sugar cultivation and factory capacity.

The market retreated to 25 563 t in 2023 as demand for molasses softened due to a slowdown in the ethanol sector. Throughout the period, evolving regulations on beverage labeling and food advertising introduced new parameters for the industry, though their implementation timelines were extended.

Production molasses in Sri Lanka

In kind, 2017-2020, t

Top producers of molasses, 2017-2020

World map of production of molasses, 2017-2020

In 2020, Sri Lanka produced 21,303 tonnes of molasses, marking a significant 15.4% decline compared to 2019. Over the period from 2017 to 2020, production fell by 14.8%, which translates to an average annual decrease of 5.2%. The highest production level was recorded in 2018 at 25,176 tonnes, with the largest year-on-year increase of 0.7% also occurring that year.

Annual dynamics of production in Sri Lanka in kind, 2017-2020, t

Exports molasses from Sri Lanka

Exports in kind, t

The data shows irregular changes, pointing to a volatile market environment. Exports reached their lowest point in 2017 and peaked in 2018, with a 59-fold difference between these years. In 2020, Sri Lanka exported 13.4 tonnes of molasses, representing a sharp 66.5% increase from the previous year. The maximum export volume was recorded in 2018 at 112.9 tonnes. The largest decline occurred in 2019 with a 92.9% drop, while the largest increase was in 2018 at 5,779.6%.

Annual dynamics of product's exports from Sri Lanka in kind, 2017-2020, t

From 2017 to 2020, the three largest markets for Sri Lanka's molasses exports in kind were Canada, Australia, and France, which together accounted for 78.7% of total export flows.

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

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

Exports in value, K $ US

Noticeable fluctuations characterized market performance during this period. Exports in value terms hit their lowest point in 2017 and peaked in 2018, with a 24-fold difference between these years. In 2020, the value of molasses exports from Sri Lanka stood at 51.5 thousand US dollars, showing an abrupt 66.2% rise compared to the previous year. The maximum value was recorded in 2018 at 175.7 thousand US dollars. The largest decline occurred in 2019 with an 82.4% drop, while the largest increase was in 2018 at 2,294.4%.

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

Throughout 2017–2020, Australia, Canada, and New Zealand played the leading roles in Sri Lanka's molasses exports in value terms, with shares of 51.4%, 18.2%, and 6.3% respectively. Together, these three markets accounted for 75.9% of total export flows.

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

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

Imports molasses to Sri Lanka

Imports in kind, t

Volatility characterized market behavior during these years. Imports reached their lowest point in 2019 and peaked in 2018, with a 21,977-fold gap between these years. In 2020, Sri Lanka imported 1.0 tonne of molasses, which is 8,777.0% higher than in 2019. The minimum import volume was recorded in 2019 at 0.0 tonnes, while the maximum was in 2018 at 250.1 tonnes. The largest decline occurred in 2019 with a 100.0% drop, and the largest increase was in 2018 at 1,134,630.5%.

Annual dynamics of product's imports to Sri Lanka in kind, 2017-2020, t

From 2017 to 2020, India effectively monopolized Sri Lanka's molasses imports in kind, accounting for 99.5% of total import flows.

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

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

Imports in value, K $ US

The data reveals irregular changes, indicating a volatile market environment. Imports in value terms were at their lowest in 2019 and peaked in 2018, with a peak-to-trough ratio of 538 times. In 2020, Sri Lanka imported 2.1 thousand US dollars worth of molasses, up by 4,263.8% compared to the previous year. The minimum value was recorded in 2019 at 0.0 thousand US dollars, while the maximum was in 2018 at 25.5 thousand US dollars. The largest decline occurred in 2019 with a 99.8% drop, and the largest increase was in 2018 at 4,447.0%.

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

Throughout 2017–2020, India played the leading role in Sri Lanka's molasses imports in value terms, with a share of 89.6% of total flows, while other markets together accounted for the remainder.

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

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