Indian rice exporters target significant freight cost reduction for basmati shipments to Iraq

India’s rice exporters have arranged shipments of 102,210 metric tonnes of Basmati rice to Iraq across three bulk vessels, aiming to cut freight costs by 74% amid shipping disruptions, container shortages and rising logistics expenses. The Indian Rice Exporters’ Federation (IREF) said the arrangement would cut freight costs to around $90 per tonne, down from container shipping quotations of about $350 per tonne. This would mean a potential saving of $260 per tonne. Based on these quoted rates, the three-vessel programme could generate gross freight savings of about $26.6 million. The actual savings, however, would depend on the final shipping costs and contractual terms. The three vessels are bound for Iraq’s Umm Qasr port, said a report.

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