Executive Summary

On 24 August 2026, DGFT issued Notification No. 34/2026-27 (wheat flour, Maida, Semolina/Rava-Suji, Atta — ITC (HS) 11010000) and Notification No. 35/2026-27 (wheat — ITC (HS) 10011900, 10019910), shifting the export policy for these products from "Prohibited" to "Free" with immediate effect.

Background

Wheat exports were classified "Prohibited" in May 2022 amid supply shocks and domestic price concerns, extended to wheat flour and related products in August 2022. Exports were since permitted only on a government-to-government or NCEL-allocation basis.

What Has Changed?

Both wheat (under the specified ITC (HS) codes) and wheat flour/Maida/Semolina/Atta (under ITC (HS) 11010000) move from Prohibited to Free, permitting private commercial exports without special approvals.

Key Provisions

• Chapter 10 (Cereals) and Chapter 11 (Milling Industry products) of Schedule 2 of the ITC (HS) Classification amended from Prohibited to Free.
• No DGFT export authorisation required for the covered products.
• The notifications do not prescribe a Minimum Export Price or export duty surcharge.

Applicability / Who Are Affected

Grain trading houses, agro-commodity exporters, flour mills, packaged food manufacturers, and export logistics providers. Effective 24 August 2026.

Practical Implication

Exporters can now execute private commercial shipments; auditors of commodity traders should review revenue cut-offs around 24 August 2026, and inventory previously written down to domestic NRV may warrant reassessment given export realisation options.

What Businesses Should Do

1. Verify shipping-bill ITC (HS) codes reflect the revised Free status.
2. Ensure export proceeds are realised through Authorised Dealer banks within applicable FEMA timelines.
3. Confirm phytosanitary and quality compliance for the destination market.

KGS Perspective

The liberalisation opens export revenue channels for agro-processors, but trading desks and auditors should remain alert to contract-default clauses, geopolitical risk and currency hedging on new export commitments.

Conclusion

DGFT has reversed a four-year-old export restriction on wheat and flour products; exporters should move quickly while managing global price and counterparty risk.

Source / Regulatory Reference

• DGFT Notification No. 34/2026-27 (wheat flour): https://content.dgft.gov.in/Website/dgftprod/7c58d938-9b88-42e7-9f4c-180e66228e16/Scan%20wheat%20flour%20english.pdf
   
• DGFT Notification No. 35/2026-27 (wheat): https://content.dgft.gov.in/Website/dgftprod/464a6838-3987-4369-bd8a-3a810216bfbe/Scan%20wheat%20english.pdf