The Directorate General of Foreign Trade (DGFT) 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 environmentally friendly as it produces lower carbon dioxide emissions and has the advantage of not competing 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 220

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