Govt Permits 2G Ethanol Exports with Valid Authorisation and Certification

India has officially amended its export policy to permit the export of Second Generation (2G) ethanol, subject to prior authorisation and certification criteria. This landmark move, effective immediately, reflects the country’s dedication to promoting sustainable energy solutions and reducing carbon emissions.

DGFT Notification Opens Doors for 2G Ethanol Exports

On September 24, 2025, the Directorate General of Foreign Trade (DGFT) announced a revision in the export policy under ITC(HS) Code 22072000. The modification permits the export of 2G ethanol—an eco-friendly fuel produced from non-food biomass such as bagasse, wood waste, agricultural residues, algae, and grasses. Exporters must procure a valid Export Authorisation along with a feedstock certificate from the designated authority.

Sustainability and Trade Compliance

The policy amendment supports zero food-to-fuel competition by favouring raw materials that do not impact food supply chains. Moreover, as 2G ethanol contributes significantly to carbon footprint reduction, the policy enhances India’s global image as an environmentally responsible energy exporter. Ensuring the feedstock used meets regulatory standards is vital for maintaining the export permit under this new framework.

Read More: Carbon Tax to Drive Green Steel Exports in India!

Implications for Ethanol Producers and Exporters

The move benefits industries converting agricultural waste into fuel, encouraging scalability and innovation in the biofuel supply chain. The additional compliance layer of obtaining a feedstock certificate promotes transparency in production practices. With this policy, India joins global efforts to advance clean fuel exports, further aligning with its net-zero emissions vision.

Code 22072000: What It Includes

The amendment falls under Schedule-II of the ITC (HS) 2022, containing provisions for ethyl alcohol and other denatured spirits of any strength. The move will primarily impact ethanol classified under this code, ensuring adherence to global environmental benchmarks through structured documentation and monitoring.

Conclusion

India's decision to allow 2G ethanol exports with strict authorisation and certification requirements marks a substantial policy shift. It supports eco-friendly fuel exports, promotes agricultural residue utilisation, and strengthens India’s commitment to sustainable trade practices.

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