The Indian Rice Exporters' Federation (IREF) has launched a bulk-shipping initiative reducing Basmati rice freight costs to Iraq from USD 350 to USD 90 per tonne — a 74% cut — generating an estimated USD 26.6 million in savings across 1,02,210 metric tonnes. India exported 45.64 lakh tonnes of Basmati rice worth Rs 34,284 crore to the Middle East in FY 2025–26, where the region accounts for 70% of India’s total Basmati exports. Iraq alone imported 7.64 lakh tonnes, valued at Rs 5,583 crore. The initiative aligns with IREF’s 'One Nation, One Trade, One Policy' vision and precedes the Bharat International Rice Conference 2026.
According to m.economictimes.com, the Indian Rice Exporters’ Federation (IREF) has launched a bulk-shipping initiative that reduces freight costs for Basmati rice exports to Iraq from USD 350 to USD 90 per tonne — a 74% reduction — as part of a broader effort to bolster India’s competitiveness in the Middle East market.
Bulk Shipping Initiative Targets Cost Efficiency
The initiative, executed in collaboration with Singapore-based Eximwala Solutions Pte. Ltd., covers bulk shipments totaling 1,02,210 metric tonnes of Basmati rice to Iraq via three vessels. According to IREF’s Monday press release, this arrangement is designed to counter rising freight costs, container shortages, and geopolitical disruptions affecting rice exports to the Middle East. At current container freight quotations of approximately USD 350 per metric tonne, the new bulk model delivers an estimated saving of USD 260 per tonne.
The projected gross freight cost savings across the three-vessel shipment volume amount to USD 26.6 million. This cost-reduction mechanism directly supports IREF’s stated objective of improving returns across the value chain while protecting market share in key Gulf destinations.
IREF National Vice President Dev Garg emphasized the strategic weight of logistics efficiency:
“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.” — Dev Garg, National Vice President, Indian Rice Exporters’ Federation
Market Scale and Regional Distribution
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 varieties, total rice exports to the region reached 56.48 lakh tonnes, valued at Rs 39,657 crore. The Middle East remains India’s largest regional market for Basmati, accounting for nearly 70% of the country’s total Basmati export volume.
Among individual destinations, Saudi Arabia imported Indian Basmati rice worth Rs 8,324 crore, Iran accounted for Rs 6,970 crore, Iraq for Rs 5,583 crore, and the UAE for Rs 4,132 crore. Notably, Iraq alone imported approximately 7.64 lakh tonnes of Indian Basmati rice — underscoring the commercial significance of optimizing logistics to this specific market.
IREF highlighted that lower freight costs, improved shipping capacity, and more reliable logistics will enable Indian exporters to offer competitive pricing, sustain existing market positions, and expand trade with Iraq and other Gulf countries — all aligned with its broader vision of “One Nation, One Trade, One Policy”.
Upcoming Industry Engagement
The initiative coincides with preparations for the Bharat International Rice Conference (BIRC) 2026, scheduled for October 23 to 25 at Bharat Mandapam in New Delhi. A dedicated session will address shipping costs, bulk and container logistics, cargo insurance, port delays, and maritime disputes — aiming to equip rice exporters with actionable tools to reduce costs and protect profit margins.
IREF stated that the Iraq shipping plan is not an isolated measure but part of a scalable framework:
“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, Indian Rice Exporters’ Federation
Source: m.economictimes.com
Compiled from international media by the SCI.AI editorial team.
