Sugarcane yields molasses and bagasse among other products. Bagasse is the fibrous matter that remains after sugarcane or sorghum stalks are crushed to extract their juice. Molasses is used as an ingredient for manufacturing fertilizers, not bagasse . So, 3 is NOT correct. Bagasse is often used as a primary fuel source for sugar mills; when burned in quantity , it produces sufficient heat energy to supply all the needs of atypical sugar mill. So, 1 is correct. Bagasse is commonly used as a substitute for wood in many tropical and subtropical countries for the production of pulp , paper (even for newspapers) and board, such as India, China, Colombia, Iran, Thailand and Argentina. So, 2 is correct.