Molasses scarcity threatens future of ethanol firms
Scarcity of the by-product is threatening the future of firms that rely on it to manufacture ethanol. Increasing demand for by-product forces some factories to suspend production. Shortage of molasses is threatening the future of firms relying on the by-product to manufacture ethanol.
The miller was a major molasses supplier to the two distilleries before constructing its own plant at a cost of Sh3.5 billion. Agro-Chemical’s CEO Ashok Agrawal says the problem has been worsened by poor investment by the country in sugar cane, which has seen most millers operating in excess capacity.
“The area under cane plantation has stagnated for over 40 years yet sugar industries are cropping up every day, with little cane to crush; molasses can never be enough,” said Mr Agrawal. The firm has gone to the extent of booking the sugar by-product from millers in Uganda and Tanzania, which Mr Agrawal says, has pushed up the cost of doing business and affected the cost of the final product.... Read the full, comprehensive news article and discuss at Business Daily Africa