The Indian Rice Exporters’ Federation (IREF) has launched a bulk-shipping initiative aimed at reducing freight costs for Basmati rice exports to Iraq by nearly 74%, potentially strengthening India’s competitiveness in one of its largest rice export markets. The initiative targets a reduction in shipping costs from USD 350 to USD 90 per metric tonne, as India’s Basmati exports to the Middle East reached ₹34,284 crore in FY2025-26.
According to a press release issued by IREF on Monday, the initiative has been launched in collaboration with Singapore-based Eximwala Solutions Pte. Ltd. It covers the shipment of 1,02,210 metric tonnes of Basmati rice to Iraq across three vessels.
The move comes amid rising freight charges, container shortages and geopolitical disruptions affecting India’s rice exports to the Middle East. By shifting to bulk shipping, the federation aims to reduce logistics expenses, improve export competitiveness and strengthen trade with Iraq and other Gulf destinations.
Bulk Shipping Targets 74% Reduction in Freight Costs
IREF said container freight quotations for shipments to Iraq have reached approximately USD 350 per metric tonne. Under the new bulk-shipping arrangement, the targeted freight cost is around USD 90 per tonne, representing an estimated saving of USD 260 per tonne.
Based on the quoted rates and the proposed shipment volume of 1,02,210 metric tonnes, the initiative could generate gross freight cost savings of approximately USD 26.6 million across the three vessels.
Lower transportation costs could help exporters improve their pricing competitiveness in overseas markets while potentially offering better value to international buyers. However, the actual savings will depend on the final shipping costs and execution of the proposed shipments.
Middle East Accounts for Nearly 70% of India’s Basmati Exports
The Middle East remains the largest regional market for Indian Basmati rice, accounting for nearly 70% of the country’s total Basmati export volume, according to IREF.
During FY2025-26, India exported 45.64 lakh metric tonnes of Basmati rice worth ₹34,284 crore to the region. Including non-Basmati rice, total Indian rice exports to the Middle East reached 56.48 lakh tonnes, valued at ₹39,657 crore.
Saudi Arabia was the largest destination among the markets highlighted in the report, importing Indian Basmati rice worth ₹8,324 crore during the financial year. Iran followed with imports worth ₹6,970 crore, while Iraq accounted for ₹5,583 crore and the United Arab Emirates (UAE) for ₹4,132 crore.
Iraq alone imported approximately 7.64 lakh tonnes of Indian Basmati rice, highlighting the importance of maintaining cost-effective and reliable shipping arrangements for exporters serving the market.
IREF Highlights Logistics as a Key Factor in Export Competitiveness
IREF National Vice President Dev Garg said rising shipping costs directly affect India’s competitiveness in the Middle East, which accounts for a substantial share of the country’s Basmati exports.
“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,” Garg said.
He added that the federation aims to develop similar commercially viable solutions for other Gulf destinations to strengthen India’s rice exports and improve returns across the value chain.
The initiative reflects an effort to address logistics costs, which can influence the final price of agricultural exports and the margins available to exporters. More efficient shipping arrangements could help Indian suppliers protect their market share and compete with alternative suppliers.
Bharat International Rice Conference 2026 to Focus on Shipping Challenges
The bulk-shipping initiative comes ahead of the Bharat International Rice Conference (BIRC) 2026, scheduled for October 23–25 at Bharat Mandapam in New Delhi.
The conference will include a dedicated session on shipping costs, bulk and container logistics, cargo insurance, port delays and maritime disputes. These issues have become increasingly important for exporters seeking to manage transportation expenses and protect profit margins amid disruptions to international trade routes.
Discussions are expected to focus on practical measures that could help rice exporters improve logistics efficiency and reduce costs across international supply chains.
IREF Pushes for Lower Trade Costs and Stronger Global Market Access
IREF said the initiative forms part of its broader vision of “One Nation, One Trade, One Policy”, which focuses on reducing trade costs and strengthening India’s position in global rice exports.
The proposed bulk-shipping arrangement could provide a model for similar logistics initiatives across other Gulf markets if it delivers the targeted cost reductions. Lower freight expenses and improved shipping capacity could help exporters offer more competitive prices while supporting trade volumes.
For India’s rice export industry, the effectiveness of such initiatives will depend on the reliability of shipping arrangements, actual freight savings and the ability to extend cost-efficient logistics to additional destinations.
With the Middle East accounting for a major share of India’s Basmati trade, reducing transportation costs could play an important role in maintaining market access, supporting exporters and strengthening the country’s position in the global rice trade.
