India's basmati has a $350-to-$90 shipping gamble
The Indian Rice Exporters Federation (IREF) has introduced a bulk-shipping initiative to lower freight costs for Basmati rice exports to Iraq by approximately 74%, reducing prices from $350 to $90 per tonne, boosting India's competitiveness in the Middle East market. The initiative, in partnership with Singapore-based Eximwala Solutions Pte.
Ltd., covers 102,210 metric tonnes of Basmati rice to Iraq via three vessels. Rising freight costs, container shortages, and geopolitical disruptions have affected India's rice exports to the Middle East. Container freight quotations for Iraq have reached around $350 per metric tonne, and the new shipment arrangement aims to reduce costs to about $90 per tonne, resulting in potential savings of $260 per tonne.
The Middle East remains India's largest regional market for Basmati rice, with a 70% share of the country's total Basmati export volume. The initiative follows the Bharat International Rice Conference, scheduled to take place in New Delhi from October 23 to 25, focusing on shipping costs, bulk and container logistics, cargo insurance, port delays, and maritime disputes.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
