Business · Trade · 1 hr ago
India plan aims to cut Basmati shipping costs to Iraq by nearly 74%
The Indian Rice Exporters’ Federation has launched a plan to ship 102,210 tonnes of Basmati rice to Iraq in bulk on three vessels.
It is working with Singapore-based Eximwala Solutions on the arrangement.
The federation says freight costs could fall from about $350 to $90 per tonne, saving an estimated $26.6 million across the shipments.
The plan comes as rising freight costs, container shortages and geopolitical disruption affect rice exports to the Middle East.
The region takes nearly 70% of India’s Basmati exports, and Iraq imported about 764,000 tonnes of Indian Basmati rice.
Lower shipping costs could help Indian exporters compete and maintain or grow their sales in Iraq and other Gulf markets.
The federation says it wants to develop similar arrangements for other Gulf destinations.
India’s Indian Rice Exporters’ Federation has launched a bulk-shipping plan for Basmati rice exports to Iraq.
The initiative aims to cut freight costs from about USD 350 to USD 90 per tonne, a reduction of nearly 74 per cent.
It covers 102,210 metric tonnes of rice shipped to Iraq on three vessels with Singapore-based Eximwala Solutions.
IREF estimates the plan could save about USD 26.6 million in gross freight costs across the shipments.
The initiative comes as the Middle East accounts for nearly 70 per cent of India’s Basmati export volume.
- Who
- The Indian Rice Exporters’ Federation, in collaboration with Singapore-based Eximwala Solutions Pte. Ltd.
- What
- A bulk-shipping initiative aims to reduce freight costs for Basmati rice exports to Iraq from about USD 350 to USD 90 per tonne.
- When
- IREF announced the initiative in a press release on Monday. The article was published on October 12, 2026.
- Where
- The shipments are from India to Iraq.
- Why
- To lower shipping costs and strengthen the competitiveness of Indian rice exporters in the Middle East.
This story does not have two clearly opposing sides.
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.
India exported 45.64 lakh metric tonnes of Basmati rice worth Rs 34,284 crore to the Middle East.
The Economic Times published its report on IREF’s bulk-shipping initiative.
The Bharat International Rice Conference is scheduled to take place at Bharat Mandapam in New Delhi.
- Freight cost target
- From USD 350 to USD 90 per tonne
- Planned shipment volume
- 102,210 metric tonnes
- Number of vessels
- Three
- Estimated gross freight savings
- USD 26.6 million
- Middle East share of Indian Basmati exports
- Nearly 70 per cent
Sources
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