Indian rice exporters find a way through disruptions to retain competitiveness in Gulf market
Indian rice exporters have partnered with Eximwala Solutions to utilise bulk shipping for their products with an aim to significantly lower freight costs by about 74%, enhancing competitiveness. The shipments will mainly target the Gulf region, where demand for Basmati rice is substantial.
Indian rice exporters are adapting to shipping cost and logistical challenges stemming from the Iran conflict by embracing bulk shipping to maintain their competitiveness in the Gulf market. The Indian Rice Exporters’ Federation (IREF) has partnered with Singapore-based Eximwala Solutions to ship 102,210 metric tonnes of Basmati rice to Iraq via three bulk vessels, potentially cutting freight costs by 74% from current container shipping rates.
This cost reduction could save around $26.6 million across the three shipments, depending on final shipping costs and contractual terms. The shipments, destined for Iraq's Umm Qasr port, include the MV LAMAR S, which has already begun unloading its cargo. Indian rice trade heavily relies on access to West Asian markets, with the Gulf being India's largest regional market for Basmati rice.
In the financial year 2025-26, India exported 4.564 million tonnes of Basmati rice worth Rs 34,284 crore to West Asia, comprising about 70% of its total Basmati export volume. Saudi Arabia was India's largest Basmati destination in the region, followed by Iran, Iraq, and the United Arab Emirates. Bulk shipping offers an alternative when container availability is limited, though its benefits depend on vessel availability, port handling expenses, shipment schedules, and buyer requirements.
This initiative precedes the Bharat International Rice Conference (BIRC) 2026 in New Delhi, where a knowledge session will discuss bulk and container shipping strategies to protect margins and mitigate disputes.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
