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EquityWire2G Ethanol: Government permits export of 2G ethanol to boost domestic manufacturing
2G Ethanol

Government permits export of 2G ethanol to boost domestic manufacturing

This story was originally published at 12:57 IST on 24 September 2025
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Informist, Wednesday, Sept. 24, 2025

 

--Govt permits export of 2G ethanol with immediate effect 

--Govt official: Allowed exports to promote 2G ethanol-manufacturing in India 

 

NEW DELHI – The Directorate General of Foreign Trade Wednesday amended India's export regulations, allowing the export of second-generation or 2G ethanol with immediate effect. This move, according to a senior government official, aims to promote the manufacturing of 2G ethanol in India and provide a boost to the industry.

 

"Currently, India produces barely any ethanol from second-generation raw materials. The thinking was that opening exports would promote its manufacturing," the official said. 

 

India's ethanol supply has remained overwhelmingly dependent on first-generation ethanol made from sugarcane juice and grains and is likely to be so for the next few years, Anurag Saraogi, executive director (biofuels), Bharat Petroleum Corp. Ltd, had recently said at the India Sugar and Bio-energy conference. He also said that 2G ethanol plants are yet to commercially scale up production. 

 

Despite abundant availability of feedstock for making 2G ethanol, collection and processing infrastructure is a problem, Saraogi said. "There is surplus paddy production, and enough paddy straw is available. But collecting it is a challenge. (Also) 2G ethanol technologies are costlier than 1G ethanol," Saraogi had said. Second-generation refineries contribute just about 1.6 billion litres of ethanol annually, against 70–80 billion litres from first-generation ethanol plants, he has said.  End

 

Reported by Pallavi Singhal

Edited by Tanima Banerjee

 

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