March 13, 2007	Tuesday	Safar 23, 1428

KARACHI, March 12: The country has so far fetched around $31.38 million on export of about 0.495 million tons of molasses during the current season (2006-07). According to details, 0.442 million tons of molasses valuing around $31 million was exported last year, and during the first two months of this year, 53,844 tons of molasses worth $0.38 million was exported.

At one stage Pakistan was getting lowest price for its molasses in the world market owing to poor quality resulting from lack of proper systems and facilities for storage, transportation etc.

There was a time when molasses was being stored by sugar mills in open pits and many a times even animals, such as buffalos and other foreign elements were traced out which destroy the quality of the exportable commodity.

However, the European Union (EU) whose members had been major importers of molasses from Pakistan introduced quality control programme under which sugar mills were asked to follow certain good management programme (GMP) to ensure that quality is maintained by keeping foreign elements out from molasses at every stage, including storage and transportation.

Under the GMP, the EU only certifies those sugar mills who strictly follow the laid down criteria under which owners of the mills have to follow certain quality standards right from growing of sugarcane, production, storage up to transportation in tank lorries.

The GMP programme of the EU is implemented by Product Dutch Board and it was launched in Pakistan in 2003. As a result of this measure, price for Pakistani molasses improved a lot in the world market.

Prior to the introduction of the GMP, molasses used to fetch around $35 to $60 per ton only, depending upon its demand and supply in a crushing season.

Presently molasses is fetching around $70 per ton as many sugar mills have met the EU’s GMP quality control methods.

As a result of this improvement, molasses is being used for making animal feed medicines and ethanol.The sugar mills took a number of steps to ensure that no foreign elements make their way to molasses from storage to transportation up to export stage.

Almost all the large units have been certified under GMP.

According to sugar industry sources, out of 84 units 22 sugar mills have got the EU’s quality control programme.

It is encouraging to note that on increasing number of distilleries being installed by the sugar mills the export of molasses is declining and instead ethanol exports of different grades and qualities is increasing, thereby fetching more foreign exchange for the country.

Presently 16 distilleries are operating in the country and another four are in the pipeline.

With an increased production of ethanol, the exportable surplus of molasses is declining this season as around 0.5 to 0.6 million tons of molasses is expected to be exported.

Nevertheless, export of ethanol is rapidly increasing, industry believes that around 0.2 million tons would be exported during the current crushing season which will come to an end in April, 2007.

The production ratio stands at 1:5 which means: for producing one ton of ethanol, five tons of molasses is needed which would mean that during the current season around one million tons of molasses would be converted into 0.2 million tons of ethanol which fetches around $700 per ton in the world market.