New Delhi [India], October 12 (ANI): The Indian Rice Exporters' Federation (IREF) has launched a bulk-shipping initiative that aims to reduce freight costs for Basmati rice exports to Iraq by nearly 74 per cent, from USD 350 to USD 90 per tonne, in a move expected to strengthen India's competitiveness in the Middle East market, where Basmati exports stood at Rs 34,284 crore in FY 2025-26.
According to a press release issued by IREF on Monday, the initiative, undertaken in collaboration with Singapore-based Eximwala Solutions Pte. Ltd., covers bulk shipments of 1,02,210 metric tonnes of Basmati rice to Iraq through three vessels.
The initiative comes amid rising freight costs, container shortages and geopolitical disruptions affecting India's rice exports to the Middle East.
As per IREF, container freight quotations for Iraq have reached approximately USD 350 per metric tonne, while the new bulk-shipping arrangement aims to bring costs down to around USD 90 per tonne, resulting in estimated savings of USD 260 per tonne.
At these quoted rates, the reduction could translate into approximately USD 26.6 million in gross freight cost savings across the proposed three-vessel shipment volume.
The federation highlighted that the Middle East remains India's largest regional market for Basmati rice, accounting for nearly 70 per cent of the country's total Basmati export volume.
India exported 45.64 lakh metric tonnes of Basmati rice worth Rs 34,284 crore to the Middle East during FY 2025-26. Including non-Basmati rice, India's total rice exports to the region stood at 56.48 lakh tonnes, valued at Rs 39,657 crore.
Among major export destinations, Saudi Arabia imported Indian Basmati rice worth Rs 8,324 crore, followed by Iran at Rs 6,970 crore, Iraq at Rs 5,583 crore and the UAE at Rs 4,132 crore during the financial year.
Iraq alone imported approximately 7.64 lakh tonnes of Indian Basmati rice, underlining the importance of maintaining competitive shipping arrangements for Indian exporters.
IREF National Vice President Dev Garg said rising shipping costs directly affect India's competitiveness in the Middle East market, 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 further added, "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."
According to the federation, lower freight costs, improved shipping capacity and more reliable logistics could help Indian exporters offer competitive prices, protect their existing market share and expand trade with Iraq and other Gulf countries.
The initiative comes ahead of the Bharat International Rice Conference (BIRC) 2026, scheduled to take place from October 23 to 25 at Bharat Mandapam in New Delhi.
The conference will feature a dedicated session on shipping costs, bulk and container logistics, cargo insurance, port delays and maritime disputes, aimed at helping rice exporters reduce costs and protect profit margins.
IREF said the initiative is part of its broader vision of "One Nation, One Trade, One Policy", focused on reducing trade costs and strengthening India's position in global rice exports. (ANI)
IREF initiative cuts Basmati freight costs to Iraq by 74%, aims to boost Middle East trade worth Rs 34,284 crore
