Bulk Shipping Plan Cuts Basmati Freight to Iraq, Saving Millions
The Indian Rice Exporters Federation, together with Eximwala Solutions, will ship 1,02,210 metric tonnes of Basmati rice to Iraq on three bulk vessels, lowering freight costs from about $350 to $90 per tonne.
In partnership with Singapore-based Eximwala Solutions, the Indian Rice Exporters Federation announced a bulk-shipping arrangement that will move 1,02,210 metric tonnes of Basmati rice to Iraq using three vessels. By shifting from container rates of roughly $350 per tonne to bulk rates near $90, the scheme promises savings of about $260 per tonne, equating to an estimated $26.6 million across the shipment. Iraq alone purchases around 7.64 lakh tonnes of Indian Basmati, underscoring the importance of competitive freight for maintaining market share in the Middle East, which accounts for nearly 70% of India's Basmati exports.
IREF National Vice President Dev Garg highlighted the potential for similar logistics models to be applied to other Gulf markets, aiming to strengthen India's rice trade and improve value-chain returns. The initiative will be discussed at the upcoming Bharat International Rice Conference, set for October 23-25 at Bharat Mandapam in New Delhi, where shipping costs and related challenges will be a focal point.
Why it matters
Reduced freight costs can keep Indian Basmati rice competitive in the Middle East, protecting market share and farmer incomes.
In this story
