NEW DELHI: India's rice exporters have arranged shipments of 102,210 metric tonnes of Basmati rice to Iraq across three bulk vessels, aiming to cut freight costs by 74% amid shipping disruptions, container shortages and rising logistics expenses.
The Indian Rice Exporters' Federation (IREF), in collaboration with Singapore-based Eximwala Solutions Pte. Ltd., said the arrangement would bring freight costs down to around $90 per tonne, compared with container-shipping quotations of about $350 per tonne. This would mean a potential saving of $260 per tonne.
Based on these quoted rates, the three-vessel programme could generate gross freight savings of about $26.6 million. The actual savings, however, would depend on the final shipping costs and contractual terms.
The three vessels are bound for Iraq's Umm Qasr port. The MV LAMAR S, carrying 36,810 tonnes of rice, has reached the port, berthed at Berth No. 3 and begun unloading its cargo, IREF said.
The other two vessels: MV LOLO GATE and MV OUTLANDER, have been nominated to carry 25,500 tonnes and 39,900 tonnes, respectively.
The initiative comes as exporters face higher freight rates and logistical uncertainty affecting shipments to the Gulf, India's largest regional market for Basmati rice.
India exported 4.564 million tonnes of Basmati rice worth Rs 34,284 crore to the Middle East in the financial year ended March 2026, accounting for around 70% of its total Basmati export volume, according to figures cited by IREF.
Including non-Basmati varieties, India's rice exports to the region stood at 5.648 million tonnes, valued at Rs 39,657 crore.
Saudi Arabia was India's largest Basmati market in the region, with imports worth Rs 8,324 crore in FY2025-26. It was followed by Iran at Rs 6,970 crore, Iraq at Rs 5,583 crore and the United Arab Emirates at Rs 4,132 crore, the federation said.
Iraq imported around 764,000 tonnes of Indian Basmati rice during the period, highlighting the importance of competitive freight rates and reliable shipping routes for exporters.
"The Middle East accounts for nearly 70 per cent of India's Basmati exports, and rising shipping costs directly affect our competitiveness. By targeting a reduction in freight from USD 350 to USD 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," Dev Garg, national vice president of IREF said, PTI reported.
Lower freight costs could help exporters protect profit margins and keep their rice competitively priced in overseas markets. Bulk shipments may also provide an alternative when containers are scarce or expensive.
However, the benefits will depend on the availability of bulk vessels, port-handling charges, shipment schedules and whether bulk transport suits individual consignments and buyers.
The initiative comes ahead of the Bharat International Rice Conference (BIRC) 2026, scheduled to be held at Bharat Mandapam in New Delhi from October 23 to 25.
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