In a major initiative to strengthen India's Basmati rice exports to the Gulf region, the Indian Rice Exporters' Federation (IREF) has arranged bulk shipments of 102,210 metric tonnes of Basmati rice to Iraq, causing a reduction of nearly 74% in ocean freight costs compared with container-shipping quotations.
The initiative, undertaken in collaboration with Eximwala Solutions Pte. Ltd., Singapore, comes amid rising freight costs, container shortages and geopolitical disruptions affecting India's rice exports to the Middle East.
The Middle East is India's largest regional market for Basmati rice. India exported 45.64 lakh metric tonnes of Basmati rice worth ₹34,284 crore to the Middle East in FY 2025–26, representing approximately 70% of India's total Basmati export volume. Including non-Basmati rice, India's total rice exports to the region stood at 56.48 lakh tonnes, valued at ₹39,657 crore.
Among the major destinations, Saudi Arabia imported Basmati worth ₹8,324 crore, followed by Iran at ₹6,970 crore, Iraq at ₹5,583 crore and the UAE at ₹4,132 crore during FY 2025–26. Iraq alone purchased approximately 7.64 lakh tonnes of Indian Basmati, highlighting the importance of maintaining competitive and reliable shipping arrangements.
Freight to Fall from US$350 to US$90 Per Tonne
According to IREF, container freight quotations for Iraq have reached approximately US$350 per metric tonne, while the new bulk-shipping arrangement aims to bring the cost down to approximately US$90 per tonne, representing an estimated saving of US$260 per tonne, or 74%.
At these quoted rates, the difference could amount to approximately US$26.6 million in gross freight costs across the proposed three-vessel volume.
Three Bulk Vessels, Over One Lakh Tonnes
The programme covers three vessels destined for Umm Qasr Port, Iraq.
MV LAMAR S, carrying 36,810 tonnes, has reached Umm Qasr Port, berthed at Berth No. 3, and commenced discharging rice.
Two additional vessels have been nominated: MV LOLO GATE, carrying 25,500 tonnes, and MV OUTLANDER, carrying 39,900 tonnes.
Together, these vessels represent 102,210 tonnes of Basmati rice shipments covered by the initiative.
Lower Freight Could Strengthen India's Gulf Market Position
With the Middle East accounting for approximately 70% of India's Basmati exports by volume, shipping costs are critical to the industry's international competitiveness.
IREF believes that lower freight costs, greater shipping capacity and more dependable logistics could help exporters offer competitive prices, protect existing market share and expand trade with Iraq and other Gulf destinations.
"The Middle East accounts for nearly 70% of India's Basmati exports, and rising shipping costs directly affect our competitiveness. By targeting a reduction in freight from US$350 to US$90 per tonne, we are demonstrating how better logistics can benefit both Indian exporters and overseas buyers. Our objective is to develop similar commercially viable solutions for other Gulf destinations, strengthen India's rice exports and improve returns across the value chain," said Mr. Dev Garg, National Vice President, Indian Rice Exporters' Federation (IREF).
BIRC 2026 to Focus on Shipping Costs and Export Competitiveness
The initiative comes ahead of the Bharat International Rice Conference (BIRC) 2026, scheduled for 23–25 October at Bharat Mandapam, New Delhi.
A dedicated knowledge session, "Shipping: Bulk and Containers — Protect Margins and Mitigate Disputes," will examine freight economics, bulk-versus-container shipping, cargo insurance, port delays, maritime contracts and dispute prevention.
Experts will assess how rice exporters can reduce logistics costs, protect commercial margins and respond to disruptions affecting major global trade routes.
The shipping discussion forms part of nine business-focused knowledge sessions covering global price forecasting, emerging export markets, payment protection, quality certification, government policy, sustainability, profitable rice milling and value-added rice products.
The knowledge sessions will also be live-streamed. For programme details, registration and live-streaming information, visit www.birc.in.
IREF said the initiative reflects its broader vision of "One Nation, One Trade, One Policy", aimed at reducing trade costs and strengthening India's leadership in global rice exports.
