DGFT Restores RoDTEP Rates For Key Agri & Marine Sectors

New Delhi, Feb 25 (KNN) A day after RoDTEP (Remission of Duties and Taxes on Exported Products) rates were halved across a wide range of items which triggered concern among exporters, the Directorate General of Foreign Trade (DGFT) has restored rates for agriculture, dairy, meat and marine products.

These sectors together accounted for USD 54.5 billion, or 12.3 percent of India’s merchandise exports in calendar year 2025, offering much-needed relief to exporters in jobs-intensive segments.

The restoration follows widespread concern over the sharp reduction in export benefits that could have impacted rural and processing-sector value chains.

Additional Actions Needed

Industry representatives argue that reducing both RoDTEP rates and value caps significantly dilutes the benefit. This effectively reduces the benefit to one-fourth, not half, shifting embedded tax costs back onto exporters and undermining tax neutrality.

Restore Rates for Cotton, Silk & Farm-Based Fibres

Cotton, silk and other agriculture-linked fibres remain outside the latest restoration, with their rates still halved. These segments support extensive rural value chains, sustain farm incomes and feed into textile exports.

Extending restoration to these fibres would strengthen rural employment and textile supply chains.

Reinstate Support for Labour-Intensive Sectors

Several labour-intensive industries continue to face weak global demand and stiff competition from countries such as Vietnam and Bangladesh. Sectors affected include textiles, leather, handicrafts, sports goods and engineering products.

Restoring RoDTEP rates in these segments could help prevent further erosion of export competitiveness.

Align RoDTEP with Duty Drawback Scheme

Both RoDTEP and the Duty Drawback Scheme refund unrebated domestic taxes embedded in exports and are WTO-compliant neutralisation mechanisms rather than subsidies. However, Duty Drawback refunds are not subject to budget caps and RoDTEP operates under fiscal ceilings.

Aligning the two frameworks would enhance predictability and ensure full tax remission.

Announce Five-Year Extension of Rebate of State and Central Taxes and Levies (ROSCTL)

The ROSCTL scheme, used by over 15,000 garment and made-up exporters, is currently extended only until March 31, 2026.

Industry stakeholders are calling for an early multi-year extension to enable confident export pricing, prevent order losses and reduce policy uncertainty.

While the restoration of RoDTEP rates for agriculture, dairy, meat and marine products provides immediate relief, exporters are urging broader reinstatement and structural alignment of export remission schemes to maintain India’s competitiveness in global markets.

(KNN Bureau)