Rice Exporters Save 74% On Freight Costs To West Asia

Chennai: Amidst West Asia tensions, Indian rice exporters reduced freight cost by 74 per cent by making over one lakh tonnes of basmati rice exports in bulk shipment to Iraq.

The basmati rice bulk shipment of 102,210 metric tonnes was arranged by the Indian Rice Exporters' Federation (IREF) and shipping solutions provider Eximwala. This brought down the freight from $350 to $90 per tonne.

At these quoted rates, the difference could amount to approximately $26.6 million in gross freight costs across the proposed three-vessel volume. Three vessels bound to Umm Qasr Port, Iraq - MV Lamar S, carrying 36,810 tonnes, MV Lolo Gate, carrying 25,500 tonnes, and MV Outlander, carrying 39,900 tonnes – carried the shipment.

India exported 45.64 lakh metric tonnes of Basmati rice worth Rs 34,284 crore to West Asia, which is India’s largest market. The Middle East in FY 2025–26, representing approximately 70% of India's total Basmati export volume. Including non-basmati rice, India's total rice exports to the region stood at 56.48 lakh tonnes, valued at Rs 39,657 crore.

Saudi Arabia imported Basmati 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 FY 2025–26.

"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. 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," Mr. Dev Garg, National Vice President, Indian Rice Exporters' Federation (IREF).