Union Government has restricted import of bio-fuels for all purposes. In this regard, policy condition providing for free import of bio-fuels by actual users has been deleted. Henceforth their import will require import licence from the Directorate General of Foreign Trade (DGFT). The restriction will affect import of ethyl alcohol and other spirits, denatured of any strength, petroleum oils and oils obtained from bituminous minerals (other than crude) and bio-diesel.
Till now, import was allowed only for non-fuel purposes subject to actual user condition. In August 2018, Government amended import policy to restrict the free import of biofuels. They were allowed only for non-fuel purposes.
This decision is pursuance of May 2018 Union Cabinet approval of National Policy on Biofuels, which allows doping of ethanol produced from damaged food grains, rotten potatoes, corn and sugar beet with petrol in a move to reduce oil imports.