The
Government of India, through the Directorate General of Foreign Trade (DGFT)
under the Ministry of Commerce and Industry, has introduced an additional
policy condition governing the export of second-generation (2G) ethanol. The
new provision, which is effective immediately, aims to regulate exports while
promoting the use of environmentally sustainable biofuels.
Key Details of
the Notification
Issued
on 24 September 2025 via Notification No. 32/2025-26, the amendment falls under
the Foreign Trade (Development & Regulation) Act, 1992, read with the provisions
of the Foreign Trade Policy 2023. It modifies the export policy of ethanol
listed under the Indian Trade Classification of the Harmonized System (ITC (HS)
Code) 22072000 - Ethyl alcohol and other spirits, denatured, of any strength.
What Is
Second-Generation (2G) Ethanol?
Second-generation
ethanol is produced from non-food biomass and waste-based feedstocks, such as:
Cellulosic
materials, such as bagasse, wood waste, and industrial waste.
- Agricultural
and forestry residues, including rice straw, wheat straw, and corn stover
- Non-food
crops such as grasses and algae
This
category of bioethanol is recognized for its low CO₂ emissions, and high potential
to reduce greenhouse gas (GHG) emissions without competing with food crops for
arable land.
Export
Conditions
Under
the revised policy, the export of 2G ethanol is permitted for both fuel and
non-fuel purposes, provided that exporters fulfil the following specific
regulatory requirements:
- Obtain
a valid Export Authorization.
- Secure
feedstock certification
from the relevant competent authority.
All
consignments will be subject to verification checks by designated authorities
to ensure compliance with the new standards. Additionally, exported ethanol
must meet IS 15464 specifications, as amended over time.
Effect of the
Notification
The
inclusion of this additional policy condition for the export of
second-generation ethanol has been notified with immediate effect, aligning
with India’s goals for environmental sustainability and green energy
transition.
