The Union government has restored the full Remission of Duties and Taxes on Exported Products (RoDTEP) export incentives after cutting them by 50% across sectors in February as a part of the government efforts regarding fiscal rationalisation to help manage the budget laid out for the scheme, according to a release on Monday.
In simpler terms, this move indiciates that exporters will resume receiving full refund on hidden taxes such as fuel value-added tax, electric duty, logistics taxes and more.
The government restored full RoDTEP rates and value caps for all eligible exports from March 23, 2026. This rollback of the 50% cap comes after evolving war-related disruptions stemming from the war between Iran and US and Israel forces.
"Recent developments in West Asia have led to challenges in maritime logistics, including changes in routing and transit patterns. These have had an impact on logistics costs and shipping schedules for export consignments moving to or through the region," the release said.
Exporters will get rates as applicable on Feb. 22, a move that is expected to boost liquidity support. The decision is also aimed at offsetting higher freight, logistics costs due to Middle East crisis. "This step is intended to provide timely support to Indian exporters facing elevated freight costs and war-related trade risks arising from disruptions in the Gulf and the wider West Asia maritime corridor," the release said.
This move comes after Indian Basmati rice exports were adversely affected by a rise in shipping costs stemming from the Middle East crisis. Exporters stated that freight rates to Gulf markets have doubled in recent weeks, driven by higher war risk premiums, vessel re‑routing, and container shortages.
ALSO READ: US-Iran War: Indian Basmati Rice Exports Hit As Freight Costs Double; Domestic Prices Drop 10%
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