On September 24, 2025, the Directorate General of Foreign Trade (DGFT) under the Ministry of Commerce and Industry issued Notification No. 32/2025-26, bringing significant changes to India’s export policy regarding Second Generation (2G) Ethanol. This move marks a strategic alignment with India’s green energy goals and commitment to reducing carbon emissions.
What is Second Generation (2G) Ethanol?
2G Ethanol is a type of biofuel made not from food crops but from non-edible, cellulosic materials like:
- Agricultural residues (e.g., rice straw, wheat straw, corn stover, bagasse)
- Forestry waste (e.g., woody biomass)
- Non-food crops (e.g., grasses, algae)
- Industrial waste streams
This distinguishes it from First Generation (1G) Ethanol, which is made from sugarcane, corn, or other edible crops, and often raises concerns about food vs. fuel competition.
2G Ethanol is praised for:
- Lower carbon emissions
- Reduced land-use conflicts
- High greenhouse gas (GHG) reduction potential
Key Highlights of the New Export Policy
As per the amended ITC (HS) Code 22072000, the export of 2G Ethanol is now “Restricted”, which means it requires:
- Export Authorisation: A formal approval from the competent authority before export.
- Feedstock Certification: Verification that the ethanol is indeed produced from approved 2G materials.
This ensures that only genuine, sustainable ethanol leaves Indian ports, supporting both domestic energy needs and environmental goals.
Why This Policy Matters
✅ Supports Sustainability Goals
By regulating exports, the government ensures that only clean and sustainable fuel makes it to the global market, reinforcing India’s leadership in bioeconomy and climate action.
✅ Protects Domestic Supply
As India moves toward 20% ethanol blending in petrol by 2026, securing domestic availability of 2G ethanol becomes crucial. This policy helps prioritize national needs.
✅ Encourages Ethical Trade
With feedstock verification now mandatory, this policy eliminates greenwashing and ensures exported ethanol is truly second generation, not disguised 1G fuel.
Implications for Industry Stakeholders
Ethanol Producers: Will need to maintain transparent supply chains and obtain certifications. This could initially increase compliance costs but will enhance credibility globally.
Exporters: Must seek export authorization on a case-by-case basis. Timely documentation and adherence to IS 15464 standards (for ethanol quality) will be critical.
Regulators: Will play a more active role in monitoring and certifying feedstocks, ensuring no mislabeling or misuse of export permissions.
Conclusion
This new notification is more than just a policy change—it’s a strategic signal. India is moving beyond fossil fuels and food-based biofuels to embrace cleaner, greener, and smarter energy solutions.
As the world faces climate challenges, policies like this strengthen India’s position as a responsible and forward-looking trade partner in the renewable energy space.
Export of 2G ethanol is now an opportunity— not just for profit, but for planet-positive progress.