India’s Basmati rice exporters are set to receive a logistics boost, with the Indian Rice Exporters’ Federation (IREF) introducing a bulk-shipping initiative aimed at reducing freight costs to Iraq by nearly 74%. The move seeks to improve export competitiveness amid rising shipping expenses, container shortages and geopolitical disruptions affecting trade with the Middle East.
Under the arrangement, undertaken in collaboration with Singapore-based Eximwala Solutions Pte. Ltd., bulk shipments covering 1,02,210 metric tonnes of Basmati rice will be transported to Iraq through three vessels.
According to IREF, freight quotations for container shipments to Iraq have reached approximately $350 per tonne. The new arrangement aims to bring the cost down to around $90 per tonne, generating a potential saving of $260 per tonne.
At the proposed shipment volume, the reduction could translate into gross freight savings of approximately $26.6 million, subject to the quoted rates and actual shipping costs.
The initiative comes as exporters seek ways to protect margins and maintain competitive pricing in one of India’s most important overseas markets for premium rice.
Middle East accounts for 70% of Basmati exports
The Middle East is India’s largest regional market for Basmati rice, accounting for nearly 70% of the country’s total export volume.
During FY2025-26, India exported 45.64 lakh metric tonnes of Basmati rice worth ₹34,284 crore to the region. Including non-Basmati varieties, total rice exports to the Middle East reached 56.48 lakh tonnes, valued at ₹39,657 crore.
Saudi Arabia was the largest destination for Indian Basmati rice, importing products worth ₹8,324 crore during the financial year. Iran followed with ₹6,970 crore, while Iraq accounted for ₹5,583 crore and the UAE for ₹4,132 crore.
Iraq alone imported approximately 7.64 lakh tonnes of Indian Basmati rice, highlighting the importance of reliable and cost-effective shipping arrangements for exporters.
Bulk shipping offers an alternative to container dependence
Rising freight costs have emerged as a challenge for India’s rice export trade, particularly on routes serving Gulf markets. Container availability, port delays and maritime disruptions can increase delivery costs and put pressure on exporters’ margins.
The bulk-shipping initiative is intended to address part of this cost burden by improving shipping economics for large consignments.
Dev Garg, National Vice President of IREF, said the Middle East’s substantial share of India’s Basmati exports made freight competitiveness critical to the sector.
He said the proposed reduction from $350 to $90 per tonne demonstrated how alternative logistics arrangements could benefit Indian exporters and overseas buyers.
Garg added that the federation aims to develop commercially viable solutions for other Gulf destinations to strengthen export growth and improve returns across the value chain.
Lower freight costs could allow exporters to offer more competitive prices, retain existing buyers and explore additional opportunities in regional markets. However, the extent of the benefit will depend on the implementation of the arrangement and the costs associated with individual shipments.
Exporters seek wider logistics reforms
IREF said the initiative forms part of its broader effort to reduce trade costs and strengthen India’s position in international rice markets under its vision of “One Nation, One Trade, One Policy”.
The federation is also looking to expand discussions on shipping and trade bottlenecks through 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 freight costs, bulk and container logistics, cargo insurance, port delays and maritime disputes. These issues have become increasingly important for exporters seeking to protect margins and ensure reliable deliveries to overseas buyers.
For India’s Basmati industry, the Iraq initiative highlights how logistics improvements can complement production quality and market demand in sustaining export competitiveness. If the model proves commercially viable, similar arrangements across other Gulf routes could help reduce the cost of moving Indian rice to international markets.