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Key Points

The Indian government has just updated its export rules to allow the sale of second-generation ethanol abroad. This type of ethanol is special because it's made from waste materials like crop residues and wood chips, not food crops. The move supports India's own ambitious goal of blending 20% ethanol with petrol by 2025-26. It also opens up a new market for Indian producers in the global green fuel sector.

Key Points: India Allows 2G Ethanol Export to Boost Green Fuel Production

  • New policy allows export of ethanol made from non-food materials like agricultural waste
  • Exports require valid authorization and feedstock certificate from authorities
  • Ethanol blending in petrol has already reached nearly 20% in India
  • Government aims to achieve 20% blending target by 2025-26, ahead of schedule
2 min read

Govt allows export of 2G ethanol

India's DGFT permits 2G ethanol exports, made from farm waste, to support its 20% blending target and expand the biofuel market.

"The DGFT notification, adding an additional export condition for second-generation ethanol, comes into force with immediate effect. - DGFT Notification"

New Delhi, Sep 24

The Directorate General of Foreign Trade (DGFT) on Wednesday updated India’s export rules to allow the export of second-generation (2G) ethanol.

2G ethanol or ethyl alcohol is made from non-food materials like bagasse, wood waste, agricultural residues, grasses, algae, and other renewable resources. It is considered environment-friendly as it produces lower carbon dioxide emissions and has the advantage in that it does not compete with food crops for land.

The DGFT notification, adding an additional export condition for second-generation ethanol, comes into force with immediate effect.

The rules also state that the export will be allowed only if companies have a valid Export Authorisation and a feedstock certificate from the relevant authority. The policy applies to ethanol under ITC(HS) Code 22072000, which covers ethyl alcohol and other denatured spirits.

Meanwhile, the ethanol blending with petrol by public sector oil companies for sale in India shot up to 19.93 per cent in July this year, taking the average for the ongoing ethanol supply year (ESY) 2024–25 to 19.05 per cent.

The government has been promoting blending of ethanol in petrol under the Ethanol Blended Petrol (EBP) Programme, wherein Public Sector Oil Marketing Companies (OMCs) -- Indian Oil, Bharat Petroleum, and Hindustan Petroleum -- sell ethanol blended with petrol.

The country’s target of blending 20 per cent ethanol with petrol has been advanced from 2030 to Ethanol Supply Year (ESY) 2025-26 due to the fast pace of the expansion.

In order to ensure availability of feedstock for ethanol production to achieve a 20 per cent Ethanol blending target by the Ethanol Supply Year (ESY) 2025-26, the government has taken several steps, which include expansion of feedstock for ethanol production, and development of maize clusters around ethanol plants to increase the production of maize in the catchment area of grain-based distilleries.

The government has also approved allocation of 52 lakh metric tonne (LMT) of surplus Food Corporation of India (FCI) rice for ethanol production, each for the ESY 2024-25 (from November 1, 2024 to October 31, 2025) and ESY 2025-26 up to June 30, 2026, and diversion of 40 LMT of sugar for ethanol production allowed for the ESY 2024-25.

- IANS

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Reader Comments

S
Sarah B
While the environmental benefits are clear, I hope the government ensures strict monitoring of the feedstock certificates. We don't want this to become another loophole for misuse. Proper implementation is key.
P
Priya S
Great move! This will create additional revenue streams for our farmers and reduce pollution from stubble burning. The 20% blending target by 2025-26 seems achievable with such initiatives. 👏
R
Rohit P
I'm concerned about the diversion of 40 LMT sugar for ethanol. With sugar prices already high, shouldn't we prioritize domestic consumption first? Export is good but not at the cost of local affordability.
M
Michael C
India's progress in ethanol blending is impressive. From 19% to 20% target shows serious commitment to renewable energy. This export policy will likely attract foreign investment in green technology.
K
Kavya N
Hope the benefits reach small farmers too. Often big companies capture all the advantages. The government should ensure fair pricing for agricultural waste collected from marginal farmers. 🚜
V
Vikram M
This is a strategic move to position India as a global leader in sustainable energy. Using non-food materials addresses food security concerns while promoting green energy. Win-win situation for the economy!

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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