Law Updates

On 5 January 2026, the Ministry of Chemicals and Fertilizers notified three separate amendment orders under the Bureau of Indian Standards Act, 2016. These amendments address quality control requirements for different categories of textile-based plastic woven sacks used in cement packaging and mail movement. The first amendment covers HDPE and Polypropylene woven sacks meant for packaging 50 kg cement. The second amendment applies to Polypropylene woven, laminated, block bottom valve sacks used for 50 kg cement packaging. The third amendment relates to Polypropylene and HDPE laminated woven sacks used for mail sorting, storage, transport, and distribution.

The key change across all three orders is the extension of the enforcement date. Earlier, these quality control requirements were scheduled to take effect sooner. The amended orders now clearly state that mandatory compliance will begin on 6 October 2026. This revised timeline applies to HDPE and PP woven sacks for 50 kg cement packaging, PP woven laminated block bottom valve sacks for cement, and PP/HDPE laminated woven sacks used for mail sorting, storage, transport, and distribution.

The extension supports manufacturers by providing additional time to align production processes with BIS standards. It also helps avoid supply disruptions in the cement and logistics sectors. These amendments reflect the government’s balanced approach to public interest, quality assurance, and ease of compliance. Once enforced, BIS certification will remain compulsory to ensure product safety, durability, and consistent quality across regulated textile packaging products.

The Directorate General of Foreign Trade (DGFT) has issued a key notification permitting the export of organic sugar, subject to a defined annual ceiling. As per the latest amendment, the Government of India has permitted the export of 50,000 Metric Tonnes (MT) of organic sugar per financial year, providing long-awaited relief to exporters.

This decision is a partial modification of Notification No. 36/2023 dated October 18, 2023, under which organic sugar exports were placed in the Restricted category. Under the revised policy, organic sugar falling under HS Codes 1701 14 90 and 1701 99 90 is now allowed for export with immediate effect, subject to the prescribed annual cap of 50,000 MT.

Exports will be governed by the Foreign Trade Policy (FTP), 2023, ensuring regulatory compliance and transparency. Further, the Agricultural & Processed Food Products Export Development Authority (APEDA) will issue detailed modalities for implementation, including allocation and procedural requirements.

This move is expected to promote organic agriculture exports, support certified exporters, and strengthen India’s presence in the global organic sugar market.

The Credit Guarantee Scheme for Exporters (CGSE) became operational from 1 December 2025 through the Jan Samarth Portal. The scheme supports Indian exporters during uncertain global conditions by improving access to finance. Exports play a key role in India’s economy and contribute nearly 21% of GDP. Export-related industries also support employment for more than 45 million people, with MSMEs contributing around 45% of total exports. 

The CGSE provides a 100% government-backed credit guarantee for additional loan facilities given by banks and financial institutions. The scheme allows collateral-free credit support up to 20,000 crore rupees for direct and indirect exporter MSMEs. This support improves liquidity, ensures smooth business operations, and helps exporters enter new and emerging markets. Within the first month, 1,788 applications worth 8,599 crore rupees were received. 

Out of these, 716 applications amounting to 3,141 crore rupees were sanctioned. These figures show strong confidence among exporters and lending institutions. Exporters can receive additional working capital loans of up to 20% of existing export credit limits. The scheme helps improve competitiveness, maintain employment, and strengthen India’s export ecosystem. CGSE remains open until 31 March 2026 or until the full guarantee limit is reached.

The National Pharmaceutical Pricing Authority (NPPA), exercising powers under paragraphs 5, 11, and 15 of the Drugs (Prices Control) Order, 2013, has notified the fixation of retail prices for specified new drug formulations. The prices, exclusive of Goods and Services Tax, apply to the formulations listed with defined strength, unit, manufacturer, and marketing company. Manufacturers of drugs classified as “new drugs” under DPCO 2013 must strictly adhere to the notified retail price. GST may be added only if it is actually paid or payable to the government.

Retail prices for individual packs must be calculated as per paragraph 11 of DPCO 2013. Manufacturers are required to issue and submit price lists in Form V through the Integrated Pharmaceutical Database Management System and share copies with State Drug Controllers and dealers. Retailers and dealers must prominently display these price lists at their business premises.

The applicability of the notified price is limited to manufacturers or marketers who have applied for price fixation or revision and fulfilled all statutory requirements, including valid licensing approvals. Non-compliance will attract recovery of overcharged amounts with interest under DPCO 2013 and the Essential Commodities Act, 1955. Prior price orders for the same formulations stand superseded.

The Ministry of Power issued a new notification on 23 December 2025 under the Energy Conservation Act, 2001. This notification updates the rules for distribution transformers in India. The amendment was made after consultation with the Bureau of Energy Efficiency.

All distribution transformers manufactured, sold, or purchased in India must now meet strict energy efficiency rules. Each transformer must pass type tests for load loss, no-load loss, and short-circuit impedance as per IS 2026 (Part 1):2011. BIS certification has become compulsory for every distribution transformer. The notification also extends existing star rating timelines from 2025 to 2026. A new Table 4 has been added. This table defines standard energy losses for distribution transformers up to 11 kV class. These limits apply from 1 January 2027 to 31 December 2029. The table covers ratings from 16 kVA to 2500 kVA and sets clear loss limits for 1-star to 5-star transformers at both 50% and 100% load.

For transformer ratings not listed, BIS-certified energy efficiency levels will apply. This amendment improves power efficiency, reduces energy waste, and strengthens transformer quality across India. It also supports national energy conservation goals and long-term power sector sustainability.

The Directorate General of Foreign Trade (DGFT) has notified an amendment to the Import Policy under Chapter 29 of ITC (HS) 2022, Schedule-I, with immediate effect. The notification has been issued by exercising powers granted under Sections 3 and 5 of the Foreign Trade (Development & Regulation) Act, 1992, read with the Foreign Trade Policy 2023.

Through this amendment, DGFT has introduced Policy Condition No. 07 to regulate imports of Potassium Clavulanate, diluted Potassium Clavulanate, and specified intermediates based on CIF value. Imports of diluted Potassium Clavulanate with a CIF value below USD 77 per kg and Potassium Clavulanate below USD 180 per kg have been placed under the “Restricted” category until 30 November 2026. Further, imports of intermediates used in the manufacture of Clavulanic Acid or Potassium Clavulanate, priced below USD 92 per kg, are also restricted for the same period.

These restrictions do not apply to Advance Authorisation holders, Export Oriented Units, or SEZ units, provided the imported goods are not supplied to the Domestic Tariff Area. Relevant ITC (HS) codes have been amended accordingly.