The Indian Rice Exporters Federation (IREF) has launched a bulk-shipping initiative. It aims to reduce freight costs on basmati rice exports to Iraq by about 74 percent. This means that the price per ton will have to be reduced from 350 USD to 90 USD. The move is expected to boost India’s competitiveness in the Middle East market, where basmati exports in FY 2025-26 will reach Rs. 34,284 crores. According to an IREF press release on Monday, Singapore company Eximwala Solutions Pte. Ltd. The initiative, launched in collaboration with Iraq, involves the bulk shipment of 1,02,210 metric tonnes of basmati rice to Iraq by three vessels. The initiative comes at a time when rising freight costs, container shortages and geopolitical disruptions are affecting India’s rice exports to the Middle East.

Estimated savings of $260

According to IREF, container freight rates for Iraq have reached about $350 per metric ton, while the new bulk-shipping arrangement aims to reduce costs to $90 per ton, resulting in savings of $260 per ton. Based on these rates, the proposed three-ship shipment volume could result in a total freight cost savings of approximately $26.6 million. The federation said the Middle East is India’s largest regional market for basmati rice, accounting for about 70 percent of the country’s total basmati export volume.

India exports basmati to the Gulf

India exported 45.64 lakh metric tonnes of basmati rice worth Rs 34,284 crore to the Middle East during the financial year 2025-26. Including non-basmati rice, India’s total rice exports to the region were 56.48 lakh tonnes, valued at Rs. 39,657 crores. Among the major exporting countries, Saudi Arabia during this financial year generated Rs. 8,324 crore worth of Indian basmati rice, followed by Iran (Rs 6,970 crore), Iraq (Rs 5,583 crore) and UAE (Rs 4,132 crore). Iraq alone imported about 7.64 lakh tonnes of Indian basmati rice, indicating the importance of maintaining competitive shipping arrangements for Indian exporters.

70 percent of India’s rice is in the Middle East

Dev Garg, national vice-president of IREF, said the rising cost of shipping directly affects India’s competitiveness in the Middle East market, which accounts for a large share of the country’s basmati exports. Garg said the Middle East accounts for 70 per cent of India’s basmati exports and the rising cost of shipping directly affects our competitiveness. By targeting a reduction in freight rates from US$350 to US$90 per tonne, we are demonstrating how better logistics can benefit both Indian exporters and foreign buyers. He further said that we aim to develop similar commercially beneficial solutions for Gulf destinations, strengthen India’s rice exports and improve returns across the value chain.

Organization of India International Rice Conference

According to the federation, lower freight costs, better shipping capacity and more reliable logistics can help Indian exporters offer competitive prices, protect their existing market share and increase trade with Iraq and other Gulf countries. The initiative is being taken ahead of the ‘India International Rice Conference (BIRC) 2026’, scheduled to be held from October 23 to 25 at Bharat Mandapam, New Delhi. The conference will have special sessions on shipping costs, bulk and container logistics, cargo insurance, port delays and maritime disputes, with the aim of helping rice exporters reduce costs and maintain profit margins. IREF said the initiative is part of its broader vision of “One Nation, One Trade, One Policy”, which focuses on reducing trade costs and strengthening India’s position in global rice exports.