DGFT Notifies Additional Export Policy for Second-Generation (2G) Ethanol [Read Notification]
The directorate has mentioned that only ethanol conforming to IS 15464 specifications (as amended from time to time) and derived from non-food crops or agricultural residues, ensuring low carbon emissions or high greenhouse gas (GHG) reduction, will be eligible for export.
Export - policy - Taxscan
Export - policy - Taxscan
The Directorate General of Foreign Trade ( DGFT ), under the Ministry of Commerce and Industry, has issued Notification No. 32/2025-26 dated 24 September 2025, introducing an additional export policy condition for Second-Generation (2G) Ethanol.
Under the amended condition, export of 2G ethanol falling under ITC (HS) Code 22072000 (ethyl alcohol and other spirits, denatured, of any strength) will remain under the “Restricted” category, but exports are now explicitly permitted subject to certain conditions.
The notification clarifies that 2G ethanol, produced from cellulosic and lignocellulosic feedstocks such as bagasse, wood waste, agricultural residues (rice and wheat straw, corn stover), woody biomass, grasses, algae, and other renewable industrial wastes can be exported for fuel and non-fuel purposes provided it meets stringent compliance requirements.
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The DGFT has mentioned that only ethanol conforming to IS 15464 specifications (as amended from time to time) and derived from non-food crops or agricultural residues, ensuring low carbon emissions or high greenhouse gas (GHG) reduction, will be eligible for export.
It states that such production must not compete with food crops meant for land use. Exporters will need to obtain a valid Export Authorisation along with certification of feedstock from the relevant competent authority before shipments are permitted.
According to the notification, “Export of Second Generation (2G) Ethanol - i.e. Ethanol produced through cellulosic material such as bagasse, wood waste, other renewable resources, industrial wastage, lignocellulosic feedstocks (e.g agricultural and forestry residues such as rice and wheat straw, corn and stover, bagasse, woody biomass), non-food crops (e.g. grasses, algae) and residue streams, and having low COz emissions or high GHG reduction, and which do not compete with food crops for land use and meets IS 15464 specifications (as amended from time to time) - is permitted for fuel and non-fuel purposes, subject to a valid Export Authorisation and feedstock certification from the elevant competent authority.”
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