Indian rice exporters find a way through disruptions to retain competitiveness in Gulf market

Indian rice exporters seem to have found a way around highet shipping costs and logistical disruptions caused by the Iran war, turning to bulk shipping to to protect their competitiveness.

The Indian Rice Exporters’ Federation (IREF) has partnership with Singapore-based Eximwala Solutions Pte. Ltd.to ship 102,210 metric tonnes of Basmati rice to Iraq across three bulk vessels, PTI reported on October 12.

The arrangement seeks to reduce freight costs by 74%, bringing them down to around $90 per tonne from container-shipping quotations of approximately $350 per tonne.


The proposed difference of $260 per tonne could generate gross freight savings of about $26.6 million across the three shipments. The actual benefit, however, will depend on the final shipping costs and contractual terms.

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The destination of the ships is Iraq’s Umm Qasr port. The MV LAMAR S, carrying 36,810 tonnes, has arrived at the port, berthed at Berth No. 3 and started unloading its cargo, PTI's report said quoting IREF. The MV LOLO GATE and MV OUTLANDER have been chosen for the remaining shipments of 25,500 tonnes and 39,900 tonnes, respectively.

It may be noted that Indian rice trade depends heavily on access to West Asian markets, the Gulf being India's largest regional market for Basmati rice.

During the financial year ended March 2026, India exported 4.564 million tonnes of Basmati rice worth Rs 34,284 crore to West Asia. According to IREF data, this was about 70 per cent of its total Basmati export volume. Total rice exports to these countries, Including non-Basmati varieties, touched 5.648 million tonnes, valued at Rs 39,657 crore, during the period.

Saudi Arabia was India's largest Basmati destination in the region, with imports worth Rs 8,324 crore, followed by Iran at Rs 6,970 crore, Iraq at Rs 5,583 crore and the United Arab Emirates at Rs 4,132 crore during FY2025-26, the IREF said.

Iraq imported about 764,000 tonnes of Indian Basmati during the period.

These numbers, significant from a trade point of view, show why India puts a premium on maintaining competitive shipping costs and reliable supply routes to the Gulf region.

Bulk shipping offers an alternative

Lower freight charges could help exporters preserve margins and keep the landed price of Indian rice competitive in international markets. Bulk vessels may also provide an alternative when container availability is limited, although the benefits will depend on vessel availability, port handling expenses, shipment schedules and buyers' requirements.

The initiative comes ahead of the Bharat International Rice Conference (BIRC) 2026, scheduled at Bharat Mandapam in New Delhi from October 23 to 25.

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The conference will host a knowledge session titled “Shipping: Bulk and Containers - Protect Margins and Mitigate Disputes”, covering freight economics, transport choices, cargo insurance, port delays, maritime contracts and dispute prevention.

Nine business-focused sessions will address global price forecasting, emerging export markets, payment protection, quality certification, government policy, sustainability, profitable rice milling and value-added rice products. The sessions will also be livestreamed.

IREF said the shipment programme aligns with its broader “One Nation, One Trade, One Policy” vision, which seeks to lower trade costs and strengthen India's position in global rice markets.