New Logistics Initiative Aims to Cut Freight Costs for India's Basmati Exports to Iraq
- Reports
- 12
- Developments
- 1
- Repetition
- 92%
New informationRepeats or wire copies
What happened
IREF, in collaboration with Singapore-based Eximwala Solutions Pte. Ltd., launched an initiative to ship 102,210 metric tonnes of Basmati rice to Iraq using three vessels. This effort addresses rising freight costs and container shortages affecting India's rice exports to the Middle East. The new bulk-shipping arrangement aims to reduce container freight quotations from approximately USD 350 per metric tonne to around USD 90 per tonne.
From indiatimes.com
Why it matters
The initiative could generate estimated gross freight cost savings of USD 26.6 million across the proposed shipment volume. IREF noted that rising shipping costs directly affect India's competitiveness in the Middle East market, which accounts for nearly 70% of India's Basmati exports.
Basmati rice exports to Bahrain, Iran, and Iraq have been affected since June 1, 2026.
From indiatimes.com
Who's involved
- IraqThe destination market for the Basmati rice shipments.
- Middle EastThe geopolitical region receiving a substantial share of India's Basmati exports.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- IraqSpeculative
Lower freight costs might reduce import costs for Basmati rice, improving Iraq's trade competitiveness.
Keep exploring
The entities involved
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Iraq
sovereign state in Western Asia
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Middle East
geopolitical region encompassing Egypt and most of Western Asia, including Iran
Related events
- Conflict in the Middle East is causing global commodity price hikes, leading to increased logistics costs and material inflation in key hubs like Chennai, Bengaluru, and Pune.
- The Middle East conflict is causing a steep decline in fuel oil imports, leading to market pricing dynamics being compared between Fujairah and Singapore.
- Supply risks are emerging due to the ongoing war in the Middle East.
- Oatly AB is expanding its market footprint into European channels while facing rising fuel and freight costs driven by the Middle East conflict.
- War fallout is impacting global oil flows, with risks in the Strait of Hormuz affecting oil imports, while India contends with geopolitical market pressures and intensifying competition for winter gas supply.