KARACHI, July 15: The country has exported around 1.065 million tons of molasses up to June 30, 2002, fetching around $40 million, official sources said on Monday.

With higher sugar production this season the country is expected to produce around 1.758 million tons of molasses as against 1.6 million tons of last year (2000-01).

However, around 1.6 million tons of molasses would be available for exports this season as a balance of around 0.2 million tons would be used by distilleries to produce alcohol.

Due to lesser sugarcane production last year the country could only export 1.392 million tons of molasses fetching around $55.68 million.

Sources said that the country annually exports around 50,000 tons of alcohol, mainly to France and Japan, at an average price of $400 per ton. However, government restriction on distilleries is inhibiting higher export of alcohol.

The country could earn huge amount in foreign exchange if the entire quantity of molasses is allowed to be converted into alcohol. Presently average molasses price in the world market is at around $37 per ton.

Furthermore, many countries are driving great benefit from the molasses by converting and processing it into edible and in some industrial products.

If required technology is applied the country instead of exporting millions of tons of molasses at a throwaway price could earn huge foreign exchange, a sugar technologist said.