In a positive development for ethanol producers, the Indian government has allowed the export of Second Generation (2G) ethanol.
A notification issued by the Directorate General of Foreign Trade (DGFT) on September 24 states that 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 CO2 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 relevant competent authority.
According to DGFT, “The effect of this notification is that the additional policy condition for the export of Second Generation (2G) ethanol is hereby notified with immediate effect.” Exporters must obtain valid export authorisation and appropriate feedstock certification from the designated authorities.
Meanwhile, Oil Marketing Companies (OMCs) have yesterday floated tenders inviting bids to supply approximately 1,050 crore litres of Denatured Anhydrous Ethanol for Cycle 1 of the Ethanol Supply Year (ESY) 2025–26.
According to the sources, in ESY 2024-25, till August 31, 2025, total contracted ethanol qunaity was 1159.13 crore litres and total receipt quanity is around 820.52 crore litres.
