Basmati bulk shipping has cut freight costs to Iraq by 74%, from $350 to $90 per tonne, according to the Indian Rice Exporters’ Federation (IREF). IREF and shipping solutions provider Eximwala arranged a bulk shipment of 102,210 tonnes of basmati rice, reported on 12 October 2026.
The cargo is planned across three vessels bound for Umm Qasr Port in Iraq. At the reported rates, the savings on the proposed volume could total about $26.6 million in gross freight costs.
How Does Bulk Shipping Cut Basmati Freight Costs?
Bulk shipping moves rice loose in a vessel’s hold rather than in containers. The reported rate fell from $350 to $90 per tonne, a 74% reduction. The three vessels are MV Lamar S (36,810 tonnes), MV Lolo Gate (25,500 tonnes) and MV Outlander (39,900 tonnes).
Dev Garg, National Vice President of IREF, said rising shipping costs directly affect the competitiveness of Indian exporters. He added that the goal is to develop similar solutions for other Gulf destinations.
Why Does the West Asia Market Matter for Indian Basmati?
India exported 4.564 million tonnes of basmati rice worth Rs 34,284 crore to West Asia in FY 2025-26. The Middle East accounts for about 70% of India’s basmati export volume. Total rice exports to the region, including non-basmati, were 5.648 million tonnes worth Rs 39,657 crore.
By value, Saudi Arabia was the largest basmati buyer at Rs 8,324 crore, followed by Iran (Rs 6,970 crore), Iraq (Rs 5,583 crore) and the UAE (Rs 4,132 crore).
Market Reaction and Industry Response
IREF is leading the initiative. No stock-market reaction or comment from other trade bodies was found in the sources reviewed at the time of writing.
What Happens Next?
IREF says it wants to replicate the model for other Gulf destinations. The key things to watch are whether the three vessels load and deliver as planned, whether the $90 per tonne rate holds, and whether exporters extend bulk shipping to other ports in the region.
Frequently Asked Questions
How much did freight costs fall for basmati exports to Iraq?
Freight fell from $350 to $90 per tonne, a 74% reduction, according to IREF. Savings across the proposed three-vessel volume could total about $26.6 million.
How much basmati rice is in the bulk shipment?
The shipment totals 102,210 tonnes across three vessels: MV Lamar S, MV Lolo Gate and MV Outlander. All are bound for Umm Qasr Port in Iraq.
Who organised the bulk shipment?
The Indian Rice Exporters’ Federation and shipping solutions provider Eximwala arranged the shipment.
Leave a comment