New Delhi, Feb 24 (PTI) The government on Tuesday clarified that the reduced rates and value caps under the export support scheme RoDTEP are not applicable to the export of agricultural and processed food products.

The development is important as the government, on Monday, halved the rate of duty benefits under the scheme with immediate effect. The exporting community expressed disappointment and sought reconsideration of the decision.

The Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme, launched in 2021, provides for a refund of taxes, duties and levies that are incurred by exporters in the process of manufacturing and distribution of goods, and not being reimbursed under any other mechanism at the Centre, state or local level.

Refunds under the scheme range from 0.3 per cent to 3.9 per cent. The scheme is valid till March this year.

"The reduced rates and value caps of RoDTEP benefits notified under Notification No 60 dated February 23, 2026, are not applicable for the export products falling under ITC HS Chapter 01 to 24," the Directorate General of Foreign Trade (DGFT) said in a notification.

Chapter 1- 24 deals with agri and processed food products.

The budget allocation under the scheme for 2025-26 was Rs 18,232 crore. It was proposed to increase to Rs 21,709 crore in 2026-27. But the budget allocated was Rs 10,000 crore.

According to sources, a note to the expenditure finance committee (EFC) has been sent by the Commerce Ministry to the Department of Expenditure for enhanced allocations. Comments from all the line ministries have also been sent to the department.

"We are seeking a date for the EFC meeting. The response on date is awaited," they said.

Expressing disappointment at the rate cut, Mumbai-based exporter and founder chairman of Technocraft Industries India, Sharad Kumar Saraf, said a sudden reduction of RoDTEP by a whopping 50 per cent is a bolt from the blue for the exporters.

"There is no change in any duties. The definition of RoDTEP is reimbursement of duties and taxes. Exporters have already booked orders based on RoDTEP rates. Many products and commodities are exported at 1 or 2 per cent margins. They all will suffer more losses," he noted.

Saraf added that the reduction has come at a time when exporters are reeling under the Trump tariffs.

"At this time, the government should have supported exporters. Such sudden action will result in exporters losing faith in a stable policy framework," he said.

Council for Leather Exports Chairman Ramesh Juneja said during this period of global trade turbulence and intense competitive pressure, the leather and footwear industry requires strong and timely support from the minister to remain competitive with other Asian exporting nations.

"Sustained policy backing and a stable incentive framework are essential to safeguard growth, protect market share, and strengthen India's position in the global leather and footwear value chain," he said.

The country's exports rose marginally by 0.61 per cent to USD 36.56 billion in January, while the trade deficit widened to a three-month high of USD 34.68 billion. PTI RR BAL BAL

Reduced RoDTEP rates not applicable to agri and processed food exports, DGFT clarifies after rate cuts The reduced rates and value caps under the RoDTEP scheme notified on February 23, 2026, are not applicable to exports of agricultural and processed food products falling under ITC HS Chapters 01-24, the DGFT has clarified, thereby excluding those chapters from the newly prescribed lower rates and caps and preserving their existing RoDTEP treatment.