Centre Reverses RoDTEP Rate Cut, Grants Relief to Onion Exporters and Farmers
The government’s U‑turn on RoDTEP export rebate cuts restores agricultural export benefits, easing pressure on onion exporters and farmers in Nashik’s Lasalgaon market amid declining prices and protests
Nashik | 25 February 2026: The Central government has revised its decision on the export rebate scheme RoDTEP, providing significant relief to agricultural exporters, especially for onions from Lasalgaon and other markets in Nashik district. The move comes just a day after a controversial reduction in RoDTEP rates was announced, which had initially sparked concern among farmers and traders.
On Monday, the government notified a sharp cut in RoDTEP rebate rates from 1.95 percent to 0.95 percent, prompting pushback from agriculture stakeholders who feared export competitiveness would be hit and international buyers might turn away. However, within 24 hours the Directorate General of Foreign Trade (DGFT) issued a corrigendum clarifying that the reduced rates will not apply to exports of agricultural and processed food products, including onions, sugar and other farm goods.
The reversal was welcomed by exporters and farmer organisations after strong reactions from markets like Lasalgaon APMC, where onion prices had already started to fall following initial notices of potential rebate cuts. Farmers and traders had warned that the sudden policy shift could add to price volatility and weaken India’s export position amid competition from nations such as Pakistan and Turkey.
The government’s clarification means that agricultural exports will continue to receive the earlier RoDTEP rebate benefits, helping sustain export demand and providing stability to farm incomes during a period of price fluctuations.
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