Indian rice exporters have reduced freight costs by 74% through a bulk shipment of 102,210 metric tonnes of basmati rice to Iraq, demonstrating how innovative shipping arrangements can help maintain export competitiveness amid rising geopolitical tensions in West Asia.     The shipment was organised by the Indian Rice Exporters’ Federation (IREF) in collaboration with shipping solutions provider Eximwala. By shifting to bulk shipments, the initiative brought freight rates down from US$350 to US$90 per tonne, offering substantial savings for exporters and overseas buyers.     The cargo was transported aboard three vessels bound for Umm Qasr Port in Iraq: MV Lamar S, carrying 36,810 tonnes; MV Lolo Gate, carrying 25,500 tonnes; and MV Outlander, carrying 39,900 tonnes.     At the quoted freight rates, the reduction of US$260 per tonne across the three vessels translates into estimated gross freight savings of approximately US$26.6 million, highlighting the potential of alternative logistics solutions to mitigate the impact of volatile shipping costs.     The initiative comes as West Asia continues to play a crucial role in India’s rice export trade. During FY 2025–26, India exported 45.64 lakh tonnes of basmati rice worth ₹34,284 crore to the region, accounting for approximately 70% of the country’s total basmati export volume.     Including non-basmati rice, India’s exports to the region reached 56.48 lakh tonnes, valued at ₹39,657 crore.     Among the major markets, Saudi Arabia imported basmati rice worth ₹8,324 crore during FY 2025–26, followed by Iran at ₹6,970 crore, Iraq at ₹5,583 crore and the United Arab Emirates at ₹4,132 crore.     With a significant share of India’s basmati exports destined for the Middle East, freight rate fluctuations and shipping disruptions can directly influence the competitiveness of Indian rice in international markets.     Commenting on the initiative, Dev Garg, National Vice President of IREF, said that the Middle East’s substantial share of India’s basmati exports makes logistics efficiency critical to maintaining the country’s competitive position.     “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 added that IREF aims to develop similar commercially viable shipping solutions for other Gulf destinations, strengthen India’s rice exports and improve returns across the value chain.    

The bulk shipment to Iraq underscores the potential for coordinated export logistics and alternative shipping models to reduce transportation costs and support India’s agricultural export trade during a period of heightened geopolitical uncertainty.