DGFT Frees Wheat and Wheat Flour Exports Under Specified Tariff Lines With Immediate Effect

India has removed the prohibition on exports of wheat and wheat flour under specified tariff lines, with the Directorate General of Foreign Trade issuing two separate notifications on 24 August 2026 that shift the relevant export policy from “Prohibited” to “Free” with immediate effect.

What changed on August 24

DGFT Notification No. 35/2026-27 changes the export policy for wheat covered by ITC (HS) codes 10011900 and 10019910. The first covers other durum wheat and the second covers wheat under the specified tariff entry. Both entries have been moved from the prohibited category to the free category with immediate effect.

In a parallel move, Notification No. 34/2026-27 changes the export policy for wheat flour and related products under ITC (HS) code 11010000. The covered category includes wheat or meslin flour such as atta, maida, semolina and related flour products. This line has also been shifted from “Prohibited” to “Free” with immediate effect.

Why the notifications matter

The change is material because wheat and wheat-flour exports had been operating under a restrictive policy framework with limited quota-based relaxations. Earlier DGFT measures in 2026 had allowed specified quantities of wheat and flour exports while the underlying policy classification remained prohibited. The August 24 notifications replace that restrictive classification for the specified tariff lines with a free export policy.

For exporters, finance teams and trade-compliance professionals, the most important practical point is that the policy status itself has changed. This is different from a temporary quota relaxation: the notified tariff entries are no longer classified as prohibited under the export policy from the effective date of the notifications.

What businesses and advisers should check

- Correct tariff classification: exporters should confirm that the product falls within the exact ITC (HS) codes covered by the notifications.

- Effective date: both notifications are dated 24 August 2026 and state that the policy revision applies with immediate effect.

- Contract and documentation updates: businesses that had structured contracts around quota-based permissions or prior restrictions may need to reassess export documentation, internal controls and commercial terms.

- Related compliance: a “Free” export-policy status does not remove other applicable customs, food-safety, quality, banking, FEMA or destination-country requirements.

Background: 2026 had already seen partial relaxation

DGFT had progressively relaxed the wheat and wheat-flour export regime earlier in 2026. For wheat flour under HS Code 1101, Notification No. 61/2025-26 dated 24 February 2026 allowed an additional five lakh metric tonnes while expressly keeping the general export policy prohibited. For wheat, DGFT also issued earlier amendments and modalities during the year. The August 24 notifications therefore mark a more significant policy shift because they change the classification itself from prohibited to free for the notified tariff lines.

Implications for CAs and finance teams

Chartered accountants, CFO teams and trade advisers supporting food-processing, agri-trading and export businesses should review open export contracts, product classifications, inventory plans and banking documentation in light of the change. Where an entity had previously treated wheat or flour exports as restricted, internal compliance notes and approval matrices may also need updating.

The accounting impact will depend on each company’s circumstances, but the policy change may affect revenue planning, export receivables, working-capital assumptions and disclosures around material changes in business conditions. Professionals should avoid assuming that every wheat-linked product is automatically covered: the precise tariff code and product description remain central.

The key development is straightforward but significant: DGFT has moved specified wheat and wheat-flour tariff lines from “Prohibited” to “Free” export status with immediate effect from 24 August 2026. Exporters should verify their exact ITC (HS) classification and then reassess pending contracts and compliance workflows against the new policy position, while continuing to follow all other applicable export and regulatory requirements.

Key takeaway

Same-day DGFT policy change materially alters export restrictions for major agricultural tariff lines and has direct implications for exporters, finance teams and trade-compliance advisers.