India Exempts Export Restrictions on Agricultural Commodities to Bhutan

In a significant move to strengthen trade relations and ensure food security in the region, the Government of India has announced exemptions for the export of various agricultural commodities to Bhutan. This decision, outlined in Notification No. 36/2025-26 issued by the Directorate General of Foreign Trade (DGFT) on October 3, 2025, removes all restrictions and prohibitions on the export of specific agricultural products to Bhutan with immediate effect and until further orders.

Key Highlights of the Notification

The notification, issued under the powers conferred by the Foreign Trade (Development & Regulation) Act, 1992, and the Foreign Trade Policy (FTP) 2023, lists 23 categories of agricultural commodities that are now exempted from export restrictions. These include essential food items such as milk, cream, potatoes, tomatoes, onions, lentils, rice, wheat, edible oils, sugar, and salt. The detailed list of commodities and their corresponding ITC(HS) codes is provided in the notification.

Commodities Covered Under the Exemption

The exempted commodities include:

Dairy Products: Milk and cream, both concentrated and non-concentrated, in various forms.
Vegetables: Potatoes, tomatoes, onions, and shallots.
Legumes: Dried lentils.
Grains: Wheat, meslin, and rice.
Edible Oils: Soya-bean oil, groundnut oil, palm oil, sunflower-seed oil, mustard oil, and other vegetable oils.
Sugar and Molasses: Cane sugar, beet sugar, and molasses.
Salt: Common salt, including iodized salt.

Impact of the Notification 

This exemption is expected to have a positive impact on bilateral trade between India and Bhutan. Bhutan, being a landlocked country, relies heavily on imports for its food supply. By removing export restrictions, India is ensuring the availability of essential agricultural commodities in Bhutan, thereby supporting its food security and economic stability.

Additionally, this move aligns with India’s commitment to fostering regional cooperation and strengthening ties with neighboring countries. It also provides Indian exporters with an opportunity to expand their market reach in Bhutan without facing regulatory hurdles.

Conclusion

The exemption of export restrictions on agricultural commodities to Bhutan is a welcome step that underscores India’s role as a reliable trade partner in the region. This decision not only benefits Bhutan but also opens up new avenues for Indian exporters. As the notification takes immediate effect, stakeholders in the agricultural and trade sectors are encouraged to leverage this opportunity to enhance bilateral trade and contribute to regional prosperity.

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Source: DGFT

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