Though the Andhra Pradesh Government has permitted export of 10,000 tons of Molasses, the imposition of export-pass-fee of Rs 2,500 PMT has made the commodity uncompetitive in the international markets.

Stressing the urgent withdrawal of the export-pass-fee, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) has stated that the other sugar producing states like Gujarat, Maharashtra and UP are not charging any such fee and all the export orders are being placed with them only.

The chamber secretary general D.S. Rawat said the Government of India or State Government are not charging any export duties, taxes, cess, fee for export goods unless there is a specific reason.

The chamber found that the current FOB export price of Molasses is USD 110 PMT which comes to Rs 6000 approximately per ton and the Government of Andhra Pradesh has been charging Rs 2500 per metric ton as Export pass fee ie, 42.5% of the FOB value of export.

The state government has vide notification No. GO. Ms. No. 1292. Dated 10.11.2008 (clause 14.2) imposed an export fee of Rs. 25000/- PMT on export of molasses outside the country.

Advocating for urgent corrective measures, the chamber said in case the export-pass-cess was removed huge quantities of molasses shall be exported and the country shall earn precious foreign exchange.