NOTIFICATION NO. 36/2025-26, Dated 03-10-2025
1. Introduction
The Directorate General of Foreign Trade (DGFT) has announced an important amendment to the Export Policy under ITC (HS) 2022, providing a complete exemption from existing export restrictions and prohibitions for certain agricultural commodities destined for Bhutan. The decision, which takes immediate effect, underscores India’s commitment to strengthening trade and food security cooperation with its neighbouring partner nation.
2. Scope of the Exemption
Under the revised policy, the exemption covers a range of agricultural products that were previously subject to quantitative restrictions or prohibitions under various export control measures. The commodities included fall under specific ITC (HS) codes, such as 0401 1000 (milk and cream), 0402 1010 (milk powder), 0701 9000 (potatoes), 1006 1010 (non-basmati rice), and 1507 1000 (soybean oil), among others listed in the official notification. These goods may now be freely exported to Bhutan without the need for special authorisations.
3. Policy Rationale and Trade Significance
This policy amendment aligns with India’s broader efforts to promote regional trade integration and uphold bilateral commitments under various trade and friendship agreements. The move also addresses Bhutan’s import needs for essential agricultural commodities, ensuring steady supply and price stability in the region. For India, it reaffirms its position as a dependable trade partner and a key contributor to South Asia’s food and economic resilience.
4. Implementation and Compliance
Exporters dealing with the specified commodities are now permitted to carry out shipments to Bhutan in accordance with the revised Export Policy under ITC (HS) 2022. The exemption is applicable immediately, and exporters are advised to refer to the DGFT’s official notification for detailed HS codes and documentation requirements. Customs authorities at ports of export will facilitate smooth clearance of consignments falling under the exempted categories.
5. Conclusion
In conclusion, DGFT’s move to grant export exemptions for specified agricultural commodities to Bhutan reflects India’s commitment to deepening trade partnerships and supporting regional food security. By simplifying export procedures and removing restrictions, the government aims to foster a seamless and cooperative trade environment between the two nations. This step is expected to boost agricultural exports, strengthen bilateral ties, and contribute to the long-term growth of India’s foreign trade sector.
