Govt Extends RoDTEP Scheme By 6 Months Till Sep To Cushion Exporters

New Delhi, Apr 1 (KNN) The Government has extended benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme by six months, until September 30, 2026, to support exporters impacted by disruptions linked to the ongoing West Asia crisis.

The extension was notified by the Directorate General of Foreign Trade (DGFT), which stated, "Eligible exports made during the period from April 1 to Sep 30, 2026 shall continue to be entitled to RoDTEP benefit at the rates and value caps in force as on March 31, subject to the existing terms and conditions of the scheme,” reported PTI.

The RoDTEP is a WTO-compliant scheme of the central government which provides for refund of taxes and levies paid by exporters during manufacturing and distribution of exported goods. 

The scheme was valid until March 31 this year, with refunds under the scheme ranging from 0.3 per cent to 3.9 per cent.

Rising Trade Pressures

The extension comes amid rising logistics costs due to the West Asia conflict, which has pushed up sea and air freight rates as well as insurance premiums. Disruptions in maritime routes and transit schedules have also affected export shipments, particularly those passing through the Gulf region.

India’s merchandise exports declined marginally by 0.81 per cent year-on-year to USD 36.61 billion in February, while the trade deficit narrowed to USD 27.1 billion. The full impact of the conflict, which began on February 28, is expected to reflect in March data.

Budgetary Allocation and Support Measures

The scheme had an allocation of Rs 18,232 crore for 2025–26, with a higher outlay initially proposed for 2026–27. However, the current allocation stands at Rs 10,000 crore.

To further support exporters, the government recently launched the Rs 487 crore RELIEF (Resilience & Logistics Intervention for Export Facilitation) scheme aimed at addressing elevated freight costs and supply chain disruptions.

Import Policy Changes

In parallel, the DGFT has extended the “free” import policy for pulses such as tur and urad until March 31, 2027.

Additionally, imports of yellow peas have been allowed without minimum import price conditions or port restrictions, subject to registration requirements. The minimum import price on virgin multi-layer paperboard has also been extended for one month until April 30, 2026.

(KNN Bureau)