MAHARASHTRA EXCISE OFFICIAL DOCUMENT ANALYSIS

Document Type: Government Resolution (GR) – Policy Decision on Molasses Export Ban

Reference Number: GR No. MPL-0119/Pr.Kr.07/RAUSHU-3

Issued By: Government of Maharashtra, Home Department (महाराष्ट्र शासन, गृह विभाग)

Date of Issue: 27 December 2019

Effective Date: 30 September 2020 (ban period end date)

Portal ID: 1453

SUMMARY

This Government Resolution imposes a temporary ban on the inter-state and international export of molasses (गन्ने की खोई/मळी) produced in Maharashtra during the 2019-20 sugar season. The ban is imposed due to domestic supply shortage—production is insufficient compared to domestic demand for alcohol manufacturing, ethanol production, and cattle feed. The decision cites drought conditions in Western Maharashtra and Marathwada as contributing factors to reduced cane and molasses production. The ban applies from the date of issue (27 December 2019) until 30 September 2020, with the explicit purpose of reserving Maharashtra's molasses for internal industrial and beverage alcohol production and ethanol blending in vehicle fuel (10% blending policy).

KEY PROVISIONS

1. Scope of Ban

• What is banned: Export of molasses (मळी) produced in Maharashtra during the 2019-20 sugar season to any other state (inter-state) or to any foreign country/territory (परिदेश).
• Duration: From date of publication (27 December 2019) until 30 September 2020.
• Rationale: Production insufficient compared to domestic requirement (expected 22.20 lakh MT production vs. 40 lakh MT annual requirement).

2. Domestic Demand Context

• Approximately 32 lakh MT molasses required annually for alcohol (मद्याकण) production in distilleries.
• Approximately 2.5 lakh MT molasses required for cattle feed annually.
• State distilleries (134 distilleries attached to sugar factories) include:
  • 95 cooperative sector units
  • 39 private sector units
  • 19 standalone distilleries
• Additional demand for ethanol production (under Central Government's 10% ethanol blending policy in vehicle fuel, announced 2 January 2013, enforced from May 2014).
• Central Government authorized ethanol production from B-Heavy and C-Heavy molasses (18 September 2018 and 18 December 2018 decisions).

3. Previous Export Authorization (Now Suspended)

• Prior to this GR, inter-state and international molasses export was controlled but permitted with Government prior approval (under Government Decision MPL-1213/Pr.Kr.559/RAUSHU-3 dated 4 January 2016).
• District Collectors (Zilla Adhikari) were empowered to grant export permits under the 2016 decision.
• This GR revokes those permissions for the 2019-20 season.

4. Agricultural Context for the Ban

• Floods in Western Maharashtra (Purvanchali regions)
• Drought in Marathwada
• Consequent expectation of reduced cane crushing and molasses production in 2019-20 compared to previous year.
• 2018-19 actual data: 45.72 lakh MT molasses produced (November 2018 – April 2019); 29.18 lakh MT used for distillation/cattle feed; 3.29 lakh MT exported.
• 2017-18 actual data: ~35-40 lakh MT molasses produced; ~35 lakh MT used internally; 1.77 lakh MT exported to other states; 2.53 lakh MT exported internationally.

5. Central Government Ethanol Policy Context

• Central Government decision (2 January 2013): 10% ethanol blending in vehicle fuel mandatory.
• Central Government decision (18 September 2018 and 18 December 2018): Authorized distilleries to produce ethanol from B-Heavy and C-Heavy molasses.
• Ethanol Manufacturers Association of India has requested molasses export ban due to raw material shortage for ethanol production.

6. Molasses Revenue Importance

• Molasses is a critical source of state excise revenue.
• Primary use: manufacture of alcohol (मद्य निर्मिति).
• Alcohol usage ratio: 60% industrial use : 40% beverage use.
• State generates significant revenue from alcohol manufactured from molasses.

7. Legal Basis for Ban

• Central Government decision (21 June 1993, letter MLS/1093/1/EXC-2) had revoked controls on molasses distribution, allowing licensed producers to sell any quantity to permitted license holders.
• This GR does not revoke that decision but imposes a temporary export embargo based on domestic scarcity.
• Implemented under existing legal framework: Mumbai Molasses Rules 1955, Mumbai Molasses (Control) Act 1956, and Mumbai Molasses (Sale, Supply and Price Control) Order 1960.

8. Implementation and Dissemination

• GR published on Government of Maharashtra official portal: www.maharashtra.gov.in
• Portal Reference Code: 201912271246533929
• Digital signature authentication applied.
• Copies forwarded to:
  • Chief Minister's Principal Secretary
  • Minister (RAUSHU – Revenue and Prohibition) Private Secretary
  • Principal Secretary (RAUSHU) Personal Assistant
  • Opposition Leader's Private Secretary (State Assembly/Council)
  • Commissioner, State Excise Department
  • All Divisional Commissioners
  • All District Collectors (Zilla Adhikari)
  • All Divisional Deputy Commissioners, State Excise Department
  • All Superintendents, State Excise Department

WHO IS AFFECTED

1. Sugar factories and attached distilleries (साखर कारखाने व संलग्न आसवनी):

   • 134 distilleries attached to 231 operational sugar factories
   • 95 cooperative sector distilleries
   • 39 private sector distilleries
   • 19 standalone distilleries (जिल्हादधकारी आदेशाधीन)

2. Molasses producers and traders (मळी निर्माता व व्यापारी):

   • Sugar factory owners
   • Licensed molasses wholesalers and retailers (if any inter-state licenses existed)

3. Molasses exporters (मळी निर्यातक):

   • Any parties previously holding export permits from District Collectors under the 2016 GR

4. Ethanol manufacturers (इथेनॉल निर्माता):

   • All distilleries authorized to produce ethanol from molasses
   • Cannot source molasses from exports; must source from internal production

5. Alcohol beverage manufacturers (मद्य निर्माता):

   • All industrial alcohol producers
   • All potable alcohol (beverage) producers

6. Cattle feed manufacturers (पशुखाद्य निर्माता):

   • Cannot source molasses from external states; must source internally

IMPORTANT NOTES / CONDITIONS / PENALTIES

Conditions and Exceptions:

• Ban is explicitly temporary: Limited to 30 September 2020.
• Ban applies only to 2019-20 sugar season production; not retrospective.
• Ban does NOT apply to molasses stocks produced in prior seasons (if any).
• Ban applies to interstate and international export both equally.
• No emergency exemption clause mentioned in GR.

Penalties for Non-Compliance:

• Not specified in this GR. Penalties would be governed by:
  • Bombay Prohibition Act 1949 (BPA)
  • Bombay Foreign Liquor Rules 1953 (BFLR)
  • Maharashtra Country Liquor Rules 1973 (MCLR)
  • State Excise Act provisions
  • Potentially: IPC provisions for contraband/smuggling

Appeal/Review Mechanism:

• Not specified in this GR.
• Aggrieved parties may petition Commissioner, State Excise Department, or seek Government review if domestic situation changes.

License Impact:

• No license revocation mentioned; only export permissions suspended.
• Molasses producers retain rights to manufacture and sell internally.
• District Collectors' authority to grant export permits is suspended for this period.

Revisability:

• GR implicitly states ban ends 30 September 2020; can be extended or lifted thereafter based on supply-demand assessment.
• Commissioner, State Excise, is nodal officer for implementation.

LEGISLATIVE/REGULATORY REFERENCES CITED

1. Bombay Molasses Rules, 1955 (मुंबई मळी दनयमावली 1955)
2. Bombay Molasses (Control) Act, 1956 (मुंबई मळी नियंत्रण कायदा 1956)
3. Bombay Molasses (Sale, Supply and Price Control) Order, 1960 (मुंबई मळी विक्री, पुरवठा व कीमत नियंत्रण आदेश 1960)
4. Previous Government Resolution: MPL-1213/Pr.Kr.559/RAUSHU-3, dated 4 January 2016 (export decontrol decision – now suspended for 2019-20)
5. Central Government Decision: Letter MLS/1093/1/EXC-2, dated 21 June 1993 (molasses distribution control revoked)
6. Central Government Decision: 2 January 2013 (10% ethanol blending policy for vehicle fuel)
7. Central Government Decisions: 18 September 2018 and 18 December 2018 (ethanol production authorization from B-Heavy and C-Heavy molasses)

STATISTICAL DATA CITED IN GR

LANGUAGE AND EXECUTION

• Original Language: Marathi (मराठी)
• Digitally Signed: Yes (Reference No. 201912271246533929)
• Signed By: S. S. Yadav, Executive Officer (कार्यकारी अधिकारी), Maharashtra Government
• Authority: Governor of Maharashtra (राज्यपाल महाराष्ट्र)

KEY DATES

CRITICAL LEGAL NOTE

This is a policy document suspending prior permissions, not a new regulatory rule. It does not create new offenses but implements an embargo within existing excise law frameworks. The ban is explicitly time-limited and contingent on domestic supply shortage. Enforcement is delegated to the Commissioner, State Excise Department, and all District Collectors (Zilla Adhikari).