Molasses exports from AP uncompetitive due to export fee

The state government had imposed a Rs 2,500 fee on the export of molasses on Nov 10

Though the Andhra Pradesh Government has permitted export of 10,000 tonne of molasses, the imposition of export pass fee of Rs 2,500 a tonne has made the commodity uncompetitive in the international markets, according to the Associated Chambers of Commerce and Industry of India (Assocham).

Stressing the urgent withdrawal of the export pass fee, Assocham pointed out that other sugar producing states like Gujarat, Maharashtra and UP were not charging any such fee.

In a press release here on Monday, Assocham said that the current FOB export price of molasses was $110 or about Rs 6,000 a tonne while the state government had been charging Rs 2,500 as export pass fee. The fee accounts for 42.5% of the FOB value of export.

The state government issued a notification on November 10, 2008 imposing the fee on export of molasses.