New Delhi, March 13 : Liquor major Allied Domecq has sought government's permission to manufacture rum using molasses as a base product. However, the government is yet to respond to the company's application. The company currently manufactures rum using grain as the raw material as per international standards.In India, only domestic companies are allowed to manufacture hard liquor using molasses as a base. As per the government stipulation, foreign companies have to follow international standards and manufacture spirits using grains as a base.
The CEO of the company Srikant Iluri told The Financial Express, "We have requested the government to allow us to use molasses base to manufacture rum. In certain cases like Bacardi, it has granted the necessary clearance; however, in our case, no decision has been taken as yet."
The company has applied to the food processing ministry and the Foreign Investment Promotion Board (FIPB) to grant it the clearance for making rum out of molasses. "The company has also sought the clearance of the Rajasthan government, as its distillery is located in Rajasthan and liquor is a state subject.
Mr Illuri said, "the government is yet to decide on our proposal, though our application has been on hold for quite sometime."He said, "Using molasses will definitely help us cut down on our manufacturing cost, as this raw material is widely available in the local market and it is more cost effective.
According to Mr illuri, using rum as a base will not mean a fall in the quality of its rum. He said, "the quality of our rum will remain the same even if we use molasses. Our costs would come down, though it would probably be marginal." Mr Illuri said, "We have asked the government for clearance to use molasses for manufacturing rum and not whisky. The domestic companies manufacture even whisky using molasses whereas the international stipulation is to use grains."
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