Policy tweak allows regulated export of 2G ethanol from renewable, non-food feedstocks, boosting India’s biofuel sector and green credentials

The Indian government has introduced an additional export policy condition for second generation (2G) ethanol, allowing its regulated export for fuel and non-fuel purposes.

Issued notification by the Directorate General of Foreign Trade (DGFT) on 24 September 2025, the amendment to the export policy under ITC(HS) specifies that 2G ethanol produced from cellulosic materials such as bagasse, wood waste, agricultural and forestry residues, non-food crops, and other renewable feedstocks is permitted for export. The ethanol must meet IS 15464 standards and demonstrate low carbon dioxide emissions or high greenhouse gas reduction, while not competing with food crops for land use.

Exports will require a valid export authorisation and feedstock certification from the relevant competent authority. The notification, published in the Gazette of India Extraordinary, takes immediate effect.

This move aims to bolster India’s biofuel sector, promote renewable resources, and enhance the country’s presence in the global ethanol market while supporting environmental sustainability.