KARACHI, Feb 19: The country will export over one million tons of molasses worth $5 to 6 million at an average world market rate of $55 to $60 per ton.

According to estimates the expected bumper sugarcane crop of around 60 million tons will yield about 4.5 million tons of white refined sugar and over 2.5 million tons of molasses.

Molasses exporters have received substantial orders from their buyers and brisk activity is going on at the Karachi Port for loading molasses onto ships. Already, 130,977 tons of molasses have been exported and exporters believe that they would export around one million to 1.2 million tons of molasses this season.

The balance quantity of around 1.5 million tons of molasses would be converted by distilleries into 3 million tons of ethanol. Again this will help the country to earn around $140 to $150 million at an average world market rate of $510 per ton. Last year, 250,000 tons of ethanol was exported.According to the exporters, European Union (EU) member states are the major buyers of molasses, who generally place big orders during early crushing season when the produce is normally of good quality. However, the exporters, who follow good management practices (GMP) laid down by Product Dutch Board, Holland, are getting higher price for molasses.

Responding to a question a leading exporter of molasses and ethanol Mohammad Qasim, who also owns a sugar mill, told Dawn that the 14 distilleries had to strike a balance between production of ethanol and export of molasses. Though most of the distilleries are owned by sugar mills but even then they have to buy large quantity of molasses from other mills to produce ethanol.

Consequently, he said the distilleries, running short of molasses, have to buy it at world market rates from other sugar mills, which is calculated in term of export market. This means when any distillery purchases molasses from other sugar mill it has to calculate the cost and profit on the basis of world market of both the products.

However, Mr Qasim said that there were other problems, which are confronted by the distilleries such as liquidity crunch, production and transportation problems. He said there was an acute shortage of tanker-lorries required for the haulage of molasses.

He said a large number of tanker-lorries were set on fire during the unrest after the assassination of former prime minister Benazir Bhutto on December 27. As a result owners of these vehicles were always apprehensive of the law and order situation, which also badly affects cargo movement from the hinterland to port city of Karachi.

However, he said that once the exporters enter into export contracts they become committed and have to strive hard to ensure timely delivery of molasses. Presently, two vessels with a capacity of around 55,000 tons are waiting off port for loading molasses. Mr Qasim said that the molasses and ethanol exporters faced no problem at the port where state-of-the-art loading, unloading system is in place.