2G Ethanol Export Policy Amended

The Government of India has notified an amendment regarding the export policy for Second Generation (2G) Ethanol. Using powers under the Foreign Trade (Development & Regulation) Act, 1992, and the Foreign Trade Policy 2023, a new policy condition has been added under Schedule-II (Export Policy) of ITC (HS) 2022 for ITC (HS) Code 22072000.

Under the revised policy, the export of 2G ethanol, produced from cellulosic materials such as bagasse, wood waste, agricultural residues like rice straw, wheat straw, corn Stover, forestry waste, woody biomass, grasses, algae, and other renewable resources, will now be constrained. This ethanol is known for having low CO2 emissions and high greenhouse gas reduction potential while not competing with food crops for land use.

Exports are permitted only for fuel and non-fuel purposes and will need a valid Export Authorisation along with feedstock certification from the competent authority.

Effect of the Notification: With immediate effect, exporters must comply with this additional condition to ship 2G ethanol.