Published: 25 Aug 2026
DGFT Reviews Wheat Export Quota Utilisation, Plans Reallocation of Unused Allocations
Regulatory Update | 10 August 2026
The Directorate General of Foreign Trade (DGFT) has initiated a review of the utilisation of wheat export quotas previously allocated to exporters, with unused quantities potentially being withdrawn and reallocated to other eligible exporters.
The latest action is aimed at ensuring that wheat export quotas are being effectively utilised and that quantities allocated under India’s restricted export regime do not remain idle.
Under DGFT Trade Notice No. 18/2026-27 dated 10 August 2026, exporters are required to submit details of their actual utilisation, along with supporting documentation, by 31 August 2026.
The review could have a direct impact on exporters that have received wheat export allocations but have not yet utilised them.
Key Highlights
- DGFT is reviewing utilisation of previously allocated wheat export quotas.
- The review covers wheat falling under HS Codes 10011900 and 10019910.
- Exporters must submit a Chartered Accountant-certified Utilisation Certificate.
- The certificate must reflect exports made up to 26 August 2026, supported by shipping bill details.
- Exporters seeking additional quota must provide justification along with valid export contracts or purchase orders.
- Exporters may also voluntarily surrender unused quota.
- The deadline for submission is 31 August 2026.
- Exporters seeking additional quantity must also submit the corresponding online portal amendment application.
- Exporters with utilisation above 50% may be considered for additional allocation.
- Unused quota of exporters with utilisation below 50% may be moved to a common pool for reallocation, subject to the treatment of valid pending export contracts.
- Failure to provide the required information could result in reallocation of unused quota and restrictions on future restricted export authorisations.
Background: India’s Wheat Export Quota Regime
Wheat exports from India continue to operate under a restricted/quota-based framework, reflecting the Government’s focus on maintaining adequate domestic availability and food security.
The present quota allocation mechanism was established through earlier DGFT notices, including:
- Public Notice No. 49/2025-26 dated 24 February 2026
- Public Notice No. 05/2026-27 dated 30 April 2026
The latest Trade Notice builds upon this framework by reviewing how effectively the previously allocated quantities have been utilised.
Rather than allowing unused allocations to remain with exporters indefinitely, DGFT is examining the actual utilisation position and considering the redistribution of quantities that are not being used.
Which Wheat Exports Are Covered?
The quota review concerns wheat exports falling under the following HS codes:
- 10011900
- 10019910
Exporters holding allocations under the applicable quota mechanism should therefore review their utilisation position and ensure that the information submitted to DGFT accurately corresponds with their actual exports.
What Information Must Exporters Submit?
Exporters are required to provide information enabling DGFT to assess the utilisation of their allocated quota.
1. Chartered Accountant-Certified Utilisation Certificate
Exporters must submit a Utilisation Certificate certified by a Chartered Accountant, showing the quantity actually exported against the quota allocated to them.
The certificate should include relevant shipping bill details supporting the reported exports.
The utilisation position is to be assessed as of 26 August 2026.
This documentation will allow DGFT to distinguish between quota that has actually been utilised and quantities that remain unused.
2. Request for Additional Quota
Exporters that require additional allocation may submit a request for additional quantity.
Such requests should be supported by:
- Appropriate justification;
- Valid export contracts; and/or
- Purchase orders supporting the requirement for additional quota.
Exporters seeking additional quantity must also complete the corresponding online portal amendment application.
3. Voluntary Surrender of Unused Quota
Where an exporter does not intend to utilise its remaining allocation, it may voluntarily surrender the unused quantity.
This provides exporters with an opportunity to formally communicate that the balance allocation is no longer required rather than allowing the unused quantity to remain unutilised.
Deadline for Submission: 31 August 2026
All required submissions must be made by:
31 August 2026
Exporters should pay particular attention to the prescribed submission requirements.
The Trade Notice specifies that late, incomplete or non-portal submissions will be rejected.
Accordingly, exporters seeking additional quota should not rely solely on email correspondence and must complete the applicable online amendment process as required.
How Will Unused Wheat Quota Be Reallocated?
One of the most significant aspects of the DGFT Trade Notice is the proposed treatment of underutilised allocations.
DGFT has indicated that exporters’ utilisation levels will be considered when determining whether additional quota should be allocated and whether unused quantities should be brought back into a common pool.
Exporters Using More Than 50%
Exporters that have utilised more than 50% of their allocated quota may be considered for additional allocation, subject to the applicable requirements and availability.
This creates an incentive for exporters that have actively utilised their existing allocations and can demonstrate genuine export demand.
Exporters Using Less Than 50%
Where an exporter has utilised less than 50% of its allocation, the unused quantity may be withdrawn and placed into a common pool for reallocation.
However, exporters may be able to justify retaining their allocation where they can demonstrate valid pending export contracts supporting their requirement for the remaining quota.
This distinction makes it particularly important for exporters with low utilisation to document their outstanding commercial commitments.
Why the 50% Utilisation Threshold Matters
The 50% utilisation benchmark could significantly influence the redistribution of wheat export quota.
For example, an exporter that has received a substantial allocation but has exported only a small portion of it may risk losing the unused balance.
Conversely, an exporter that has actively utilised its allocation and has genuine additional export demand may have an opportunity to seek additional quantity.
The review therefore effectively creates a mechanism through which underutilised quota can potentially move towards exporters demonstrating stronger utilisation and export demand.
What Happens to Exporters That Do Not Respond?
Exporters should not treat the DGFT review as a routine information request.
Failure to provide the required information could have direct consequences for the exporter’s quota position.
The Trade Notice indicates that non-cooperating exporters may face:
- Reallocation of unused quota; and
- Potential restriction or bar on receiving future restricted export authorisations.
This makes timely and accurate submission particularly important for businesses that intend to remain active in India’s restricted wheat export regime.
Why This Matters for Wheat Exporters
The latest DGFT action could result in a meaningful redistribution of export capacity among wheat exporters.
For Active Exporters
Exporters that have substantially utilised their allocations and have additional confirmed export demand may have an opportunity to seek additional quota.
For Underutilising Exporters
Companies that have utilised less than 50% of their allocation should assess whether they have valid commercial grounds for retaining the balance.
For Exporters with Pending Orders
Companies holding valid export contracts or purchase orders should ensure that these documents are properly compiled and submitted as supporting evidence for any request to retain or obtain additional allocation.
Recommended Action for Exporters
Businesses holding wheat export quotas should take the following steps immediately:
1. Reconcile Quota Utilisation
Compare the original allocation against actual quantities exported.
2. Compile Shipping Bill Details
Ensure that all exports reported for utilisation purposes are supported by accurate shipping bill information.
3. Obtain CA Certification
Prepare the required utilisation statement and have it appropriately certified by a Chartered Accountant.
4. Review Pending Contracts
If utilisation is below 50%, identify all valid pending export contracts or purchase orders that support the requirement for the remaining quota.
5. Decide Whether Additional Quota Is Required
Exporters with strong utilisation and confirmed demand should evaluate whether to request additional allocation.
6. Consider Voluntary Surrender
If the remaining quota is unlikely to be utilised, exporters should consider formally surrendering the unused quantity.
7. Complete the Online Application
Where additional quota is being requested, ensure that the required online portal amendment application is submitted in addition to the supporting communication.
8. Meet the 31 August Deadline
All required documentation and applications should be submitted within the prescribed timeline.
Potential Impact on India’s Wheat Export Market
The DGFT review represents an active approach to managing restricted wheat exports.
Rather than permitting previously allocated quantities to remain unused, the mechanism allows the Government to potentially reallocate available quota to exporters demonstrating actual demand and utilisation.
This could improve the efficiency of quota allocation while maintaining the broader policy objective of regulating wheat exports.
For exporters, however, it also means that obtaining a quota allocation does not necessarily guarantee that the entire quantity will remain available if it is not adequately utilised or justified.
Is This a New Wheat Export Ban?
No.
The Trade Notice does not introduce a new blanket prohibition on wheat exports.
Instead, it concerns the review and potential reallocation of previously allocated export quotas under the existing restricted/quota-based framework.
Exporters should therefore distinguish between:
- The underlying restriction on wheat exports;
- Existing quota allocations; and
- DGFT’s current review of utilisation and redistribution of unused quantities.
Conclusion
DGFT’s latest review introduces a more active approach to the management of wheat export quotas.
Exporters holding allocations under the applicable quota mechanism must now substantiate their actual utilisation through a Chartered Accountant-certified Utilisation Certificate, supported by shipping bill details. Businesses seeking additional quota must also provide appropriate commercial justification and supporting contracts or purchase orders.
The 50% utilisation benchmark is particularly significant. Exporters with higher utilisation may be considered for additional allocations, while unused quantities held by exporters with lower utilisation may be brought into a common pool for reallocation, subject to the treatment of valid pending export commitments.
With the submission deadline set for 31 August 2026, wheat exporters should promptly review their quota position, reconcile their export records and determine whether they need to seek additional allocation, justify retention of unused quota, or voluntarily surrender the balance.
For businesses operating under India’s restricted export regime, timely compliance with DGFT’s quota-utilisation review will be critical to protecting their current and future export opportunities.
Frequently Asked Questions
What is DGFT’s latest wheat export quota review?
DGFT is reviewing the utilisation of previously allocated wheat export quotas and may reallocate unused quantities to other eligible exporters.
Which HS codes are covered?
The review concerns wheat exports under HS Codes 10011900 and 10019910.
What is the deadline for submitting the utilisation information?
The deadline is 31 August 2026.
What is a Utilisation Certificate?
It is a certificate showing the quantity of wheat actually exported against the exporter’s allocated quota, supported by relevant shipping bill details and certified by a Chartered Accountant.
Can exporters request additional wheat quota?
Yes. Exporters can request additional quota by providing appropriate justification and supporting documentation such as valid export contracts or purchase orders. The applicable online portal amendment application must also be submitted.
What happens if an exporter has used less than 50% of its quota?
The unused portion may be moved to a common pool for reallocation. However, exporters may be able to justify retention of the balance by demonstrating valid pending export contracts.
What happens to exporters that fail to submit the required information?
Non-compliant or non-cooperating exporters risk having their unused quota reallocated and may face restrictions on future restricted export authorisations.
Is this a new restriction on wheat exports?
No. The Trade Notice concerns the review and reallocation of existing quota allocations under India’s restricted wheat export framework.
Official Reference
Directorate General of Foreign Trade (DGFT)
Trade Notice No. 18/2026-27
Date: 10 August 2026
F. No.: 01/91/180/032/AM22/EC/Part-I/E-45409
Signed by: Hrushikesh Reddy, Joint DGFT
Subject: Review of utilisation of wheat export quota and reallocation of unutilised quantities.
Disclaimer: This article is intended for general informational purposes only and does not constitute legal, customs, trade or regulatory advice. Businesses should seek professional advice based on their specific circumstances.