DGFT Rationalises RoDTEP Rates by 50%, Exempts Agriculture & Food Exports via Corrigendum [Read Notification]

The DirectorateGeneral of Foreign Trade (DGFT) has rationalised benefits under the Remissionof Duties and Taxes on Exported Products (RoDTEP) scheme by limiting applicable rates to 50% of the existing levels, and where applicable it shall be 50% of the notified value caps.

The amendments were notified through Notification No. 60/2025-26 dated February 23, 2026, and states that the applicable RoDTEP rates for all HS Lines as notified in Appendix 4R and Appendix 4RE shall be made half of the notified rates and value caps with immediate effect.

The RoDTEP scheme is designed to refund embedded taxes and levies - such as certain State-level duties on fuel, electricity and mandi charges that are incurred during production and distribution but are not otherwise reimbursed.

The scheme currently provides remission benefits ranging from 0.3 per cent to 3.9 per cent of the export value, depending on the product category.

The DGFT released a follow-up corrigendum to Notification No. 60/2025-26 on February 24, 2026, clarifying that the reduced rates and value caps would not be applicable to exports falling under ITC HS Chapter 01 to 24. All other provisions of the earlier notification remain unchanged.

What does ITC HS Chapter 01-24 Cover?

ITC HS Chapters 01-24 broadly covers agricultural commodities and processed food products. As a result of the corrigendum, exporters of farm and food products will continue to receive RoDTEP benefits at the originally notified rates while exporters in all other sectors will see their entitlements reduced by half.

The export industry has reacted immediately. While exporters of agricultural and food products have welcomed the exemption, several non-agricultural exporters have expressed concern over the sudden reduction in their benefits.

Sharad Kumar Saraf, founder chairman of Technocraft Industries India stated that there is no change in any duties, and that exporters had already booked orders based on RoDTEP rates, who all will suffer losses, as reported by TaxTMI.

The general industry feeling indicates that a reduction in rates may impact margins and competitiveness, particularly amid global demand uncertainty and heightened trade volatility.

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