DGFT Makes Wheat Flour Exports ‘Free’ Under HS 11010000, Replacing Prohibited Policy With Immediate Effect

The Directorate General of Foreign Trade has moved wheat flour and related products under ITC (HS) Code 11010000 from the export-policy category of “Prohibited” to “Free”. The change was made through DGFT Notification No. 34/2026-27 dated August 24, 2026 and takes effect immediately.

The covered description includes wheat or meslin flour, atta, maida, semolina, wholemeal atta and resultant atta. The notification marks a significant shift from the controlled export regime that had applied to these products.

What Notification 34/2026-27 changes

The notification amends Schedule 2 of the ITC (HS) Export Policy. For code 11010000, the existing export policy is shown as “Prohibited” and the revised policy as “Free”. The effect clause then states that the export policy of wheat flour and related products under this code is revised from prohibited to free with immediate effect.

The notification was issued by the Department of Commerce under the Ministry of Commerce and Industry, exercising powers under Section 5 read with Section 3 of the Foreign Trade (Development and Regulation) Act, 1992, together with paragraphs 1.02 and 2.01 of the Foreign Trade Policy, 2023.

Why this is a material policy reversal

Earlier in 2026, the government had eased the restrictions only through controlled quantitative windows while retaining the formal “Prohibited” classification. In January, DGFT permitted a limited quantity of wheat flour and related products to be exported subject to authorization and specified modalities. A further relaxation in February allowed an additional quantity while the underlying policy category remained prohibited.

Notification 34/2026-27 goes further. Instead of opening another quota within a prohibited regime, it changes the policy classification itself to “Free” for the specified HS code.

What “Free” means for compliance planning

The change removes the prohibition under the export-policy classification for the products covered by the notification. That is operationally important for exporters, flour millers, trading houses, logistics teams, customs consultants and finance functions that previously had to plan around the restricted-policy framework.

However, “Free” under the export-policy column should not be read as eliminating every other compliance requirement that may apply to a shipment. Exporters still need to ensure correct HS classification and comply with applicable customs, food-safety, documentation, destination-country and transaction-specific requirements. Businesses should also verify whether any separate conditions apply to their particular product, packing, destination or contractual structure.

Accounting and commercial implications

For finance teams, the policy change can affect export forecasts, inventory allocation and working-capital planning. Businesses that had treated overseas sales of wheat flour products as contingent on restricted-policy authorisation can now reassess export pipelines for goods squarely covered by code 11010000.

Companies should nevertheless avoid changing accounting assumptions merely because a policy category has been liberalised. Revenue recognition, inventory commitments, foreign-exchange exposure, credit risk and logistics costs still depend on actual contracts and shipment conditions. Where earlier export authorisations or quota-linked arrangements remain open, teams should separately review how those historical approvals interact with the new free-policy status.

Key checks for exporters and advisers

- Confirm that the product is correctly classifiable under ITC (HS) 11010000 covered by Notification 34/2026-27.

- Update internal export-policy matrices from “Prohibited” to “Free” for the covered products.

- Revisit pending orders or proposed shipments that were previously held back because of the prohibition.

- Check customs, FSSAI or other product-specific requirements independently of the DGFT policy classification.

- Review contracts, Incoterms, foreign-exchange arrangements, insurance and documentary-credit requirements before dispatch.

- Keep the notification and the applicable ITC (HS) classification on file for customs and internal compliance reference.

The central compliance change is straightforward but significant: wheat flour and the related products specified under HS 11010000 are no longer in the prohibited export category. For businesses that deal in these products, Notification 34/2026-27 should trigger an immediate update of export-control checklists and commercial planning, while other applicable shipment and product compliances continue to be assessed separately.

Key takeaway

The August 24 notification reverses a long-running prohibited classification and is still a current operational change for exporters and finance teams.