The government has introduced new policy conditions for the export of second-generation ethanol, which is derived from materials like bagasse, wood waste, and industrial byproducts. Previously, the export of this biofuel was restricted to non-fuel purposes; under the updated regulations, it may now also be exported for fuel purposes.
Second-generation ethanol is produced from cellulosic materials, including agricultural and forestry residues such as rice and wheat straw, corn, and non-food crops like grasses and algae. This biofuel has low carbon dioxide emissions and significantly reduces greenhouse gas emissions. Importantly, it does not compete with food crops for land use.
According to a notification from the Directorate General of Foreign Trade (DGFT), the export of this biofuel requires valid authorization and certification of the feedstock from the appropriate authorities.
Additionally, a separate trade notice indicates that exports will undergo inspection by relevant authorities to ensure compliance with the new regulations. Certificates of origin for the feedstock may be provided by the State Excise Department or an authorized Third Party Inspection Agency (TPIA) accredited under the National Accreditation Board for Certification Bodies (NABCB). These certificates must clearly link to their corresponding batch and invoice.
The updated export regulations allow for both fuel and non-fuel purposes, marking a significant development in the country’s biofuel policy framework.
