IREF targets nearly 74% cut in Iraq basmati freight

The Indian Rice Exporters' Federation said on Oct. 12 it arranged three bulk cargoes for Iraq, seeking a nearly 74% reduction in basmati rice shipping charges, according to an IREF press release.

IREF said in the Oct. 12 press release that the plan would move 102,210 metric tonnes with Eximwala Solutions Pte. Ltd., cutting quoted freight to $90 from $350 per metric tonne.

The cost gap matters because Iraq bought about 7.64 lakh metric tonnes of Indian basmati rice in FY 2025-26, while Middle East sales were Rs 34,284 crore. A lakh is 100,000, and a crore is 10 million.

Freight math

At the rates cited by the federation, the arrangement implies $260 per metric tonne of freight savings and about $26.6 million across the three-vessel volume. IREF framed the plan as a response to higher freight quotations, tighter container availability and geopolitical disruptions affecting rice shipments to the Middle East.

“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,” IREF National Vice President Dev Garg said in the release.

Garg said IREF wants to extend the model beyond Iraq if the economics work. “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,” he said.

Gulf exposure

IREF said the Middle East was India’s largest regional basmati market, taking nearly 70% of export volume. India shipped 45.64 lakh metric tonnes of basmati rice to the region in FY 2025-26, worth Rs 34,284 crore.

The broader rice trade was larger when non-basmati shipments were included. IREF said India’s total rice exports to the Middle East reached 56.48 lakh metric tonnes in FY 2025-26, valued at Rs 39,657 crore.

Iraq ranked behind Saudi Arabia and Iran among the named Middle East basmati buyers by value in FY 2025-26. Saudi Arabia imported Indian basmati worth Rs 8,324 crore, Iran bought Rs 6,970 crore, Iraq bought Rs 5,583 crore and the UAE bought Rs 4,132 crore, according to IREF.

The stated savings are gross figures based on quoted container rates and the proposed three-vessel shipment size. IREF’s release did not provide binding contract terms, loading dates, port pairs, insurance costs or demurrage assumptions, leaving the final net cost effect unclear.

IREF said lower freight costs, more shipping capacity and more dependable logistics could help Indian exporters price more competitively, defend existing sales and build trade with Iraq and other Gulf markets. Those outcomes were presented by the federation as expectations, not completed results.

What to watch

The Bharat International Rice Conference 2026 is scheduled for Oct. 23 to Oct. 25 at Bharat Mandapam in New Delhi.

IREF said the event will include a session on shipping costs, bulk and container logistics, cargo insurance, port delays and maritime disputes.

The conference will show whether IREF and exporters disclose further Gulf routes, volumes or cost targets beyond the Iraq plan. IREF said the Iraq arrangement is part of its broader “One Nation, One Trade, One Policy” effort to lower trade costs and support India’s rice-export position.

Source: press release, Indian Rice Exporters' Federation, Oct. 12; news article, ANI via The Economic Times, Oct. 12.