IREF Slashes Basmati Freight Costs to Iraq by 74%
The IREF initiative reduces Basmati rice shipping costs to Iraq from USD 350 to USD 90 per tonne, aiming to boost Middle East trade worth Rs 34,284 crore.
In a massive move to bolster India's dominance in the global rice market, the Indian Rice Exporters' Federation (IREF) has launched a strategic bulk-shipping initiative designed to slash Basmati rice freight costs to Iraq by nearly 74 per cent.
The initiative aims to bring shipping expenses down from a staggering USD 350 per tonne to just USD 90 per tonne. This drastic reduction is expected to provide a significant competitive edge for Indian exporters in the Middle East, a region that saw Basmati exports valued at a massive Rs 34,284 crore during the 2025-26 financial year.
A Massive Logistics Breakthrough
Collaborating with Singapore-based Eximwala Solutions Pte. Ltd., the IREF is overseeing the bulk shipment of 1,02,210 metric tonnes of Basmati rice to Iraq using three dedicated vessels. This logistical masterstroke comes at a critical time when Indian exporters have been struggling with:
- Skyrocketing container freight quotations.
- Acute shortages of shipping containers.
- Ongoing geopolitical disruptions affecting maritime routes to the Middle East.
By shifting to this bulk-shipping model, the federation expects to save approximately USD 260 per tonne. For the proposed three-vessel shipment alone, this translates to an estimated gross freight cost saving of roughly USD 26.6 million.
Middle East: The Crown Jewel of Basmati Exports
The Middle East remains the most vital destination for Indian Basmati, accounting for nearly 70 per cent of the country's total export volume. During the FY 2025-26, India exported 45.64 lakh metric tonnes of Basmati rice to the region, valued at Rs 34,284 crore.
When looking at the broader landscape of rice exports to the region, the numbers are even more impressive:
- Total Rice Exports (Basmati & Non-Basmati): 56.48 lakh tonnes, valued at Rs 39,657 crore.
- Saudi Arabia: Imported Basmati worth Rs 8,324 crore.
- Iran: Imported Basmati worth Rs 6,970 crore.
- Iraq: Imported Basmati worth Rs 5,583 crore (approx. 7.64 lakh metric tonnes).
- UAE: Imported Basmati worth Rs 4,132 crore.
Strengthening Global Competitiveness
Dev Garg, National Vice President of IREF, emphasized that the rising costs of shipping were directly threatening India's ability to compete in these high-value markets.
"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," said Garg.
Garg further noted that the federation's ultimate goal is to replicate this commercially viable model for other Gulf destinations, thereby improving returns across the entire value chain and protecting India's market share.
Looking Ahead: Bharat International Rice Conference 2026
This initiative sets the stage for the upcoming Bharat International Rice Conference (BIRC) 2026, scheduled to be held from October 23 to 25 at Bharat Mandapam in New Delhi. The conference is expected to host dedicated sessions addressing critical industry pain points, including:
- Bulk and container logistics optimization.
- Managing shipping costs and cargo insurance.
- Navigating port delays and maritime disputes.
The IREF has stated that this move is a cornerstone of its "One Nation, One Trade, One Policy" vision, which seeks to streamline trade costs and solidify India's position as the premier global supplier of premium rice.