India’s DGFT Introduces New Policy Condition for Export of Second-Generation Ethanol

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.