<p class="ds-markdown-paragraph" style="margin: 16px 0px; color: rgb(15, 17, 21); font-family: quote-cjk-patch, Inter, system-ui, -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen, Ubuntu, Cantarell, &quot;Open Sans&quot;, &quot;Helvetica Neue&quot;, sans-serif; font-size: 16px;"><span class="">The Indian Rice Exporters Federation, working with Singapore-headquartered Eximwala Solutions Pte. Ltd., has arranged three bulk vessels to transport a combined 102,210 tonnes of basmati rice to Iraq, in a bid to counter container shortages and sharply elevated freight costs on Middle East routes. According to figures released by IREF, the bulk shipping arrangement targets a freight rate of about $90 per tonne, compared with container quotes of roughly $350 per tonne—a reduction of approximately 74%, or about $260 per tonne. On that basis, the three-vessel programme would generate aggregate freight savings of around $26.6 million, though actual gains will depend on final voyage costs, port charges and contractual terms.</span></p><p class="ds-markdown-paragraph" style="margin: 16px 0px; color: rgb(15, 17, 21); font-family: quote-cjk-patch, Inter, system-ui, -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen, Ubuntu, Cantarell, &quot;Open Sans&quot;, &quot;Helvetica Neue&quot;, sans-serif; font-size: 16px;"><span class="">The first vessel under the programme, MV LAMAR S, carrying 36,810 tonnes of basmati rice, has arrived at Umm Qasr port in Iraq, berthed at Berth No. 3 and commenced discharge. The two further nominated vessels are MV LOLO GATE, with 25,500 tonnes, and MV OUTLANDER, with 39,900 tonnes. IREF said the arrangement is intended to serve as a template for developing similar commercially viable solutions for other Gulf destinations, with the broader aim of strengthening the competitiveness of Indian rice exports.</span></p><p class="ds-markdown-paragraph" style="margin: 16px 0px; color: rgb(15, 17, 21); font-family: quote-cjk-patch, Inter, system-ui, -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen, Ubuntu, Cantarell, &quot;Open Sans&quot;, &quot;Helvetica Neue&quot;, sans-serif; font-size: 16px;"><span class="">The Middle East occupies a central position in India's basmati trade. According to data cited by IREF, India exported 4.56 million tonnes of basmati rice to the Middle East in FY2025-26, valued at ₹34,284 crore—about 70% of India's total basmati exports. Including non-basmati varieties, total rice exports to the region amounted to 5.648 million tonnes worth ₹39,657 crore. Saudi Arabia is India's largest basmati destination in the region at ₹8,324 crore, followed by Iran at ₹6,970 crore, Iraq at ₹5,583 crore and the UAE at ₹4,132 crore.</span></p><p class="ds-markdown-paragraph" style="margin: 16px 0px; color: rgb(15, 17, 21); font-family: quote-cjk-patch, Inter, system-ui, -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen, Ubuntu, Cantarell, &quot;Open Sans&quot;, &quot;Helvetica Neue&quot;, sans-serif; font-size: 16px;"><span class="">Iraq has been prioritised under the bulk shipping arrangement in part because of the scale of its imports. In FY2025-26, Iraq imported approximately 764,000 tonnes of basmati rice from India. Dev Garg, National Vice President of IREF, framed the initiative in terms of competitive necessity: "The Middle East accounts for nearly 70% of India's basmati exports, and rising freight costs directly affect our competitiveness. By bringing freight down from $350 to $90, we are demonstrating how better logistics can benefit both Indian exporters and overseas buyers."</span></p><p class="ds-markdown-paragraph" style="margin: 16px 0px; color: rgb(15, 17, 21); font-family: quote-cjk-patch, Inter, system-ui, -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen, Ubuntu, Cantarell, &quot;Open Sans&quot;, &quot;Helvetica Neue&quot;, sans-serif; font-size: 16px;"><span class="">The bulk shipping move comes against a backdrop of sustained disruption to container shipping linked to tensions in West Asia. Since the conflict escalated in February 2026, container freight rates on India–Gulf routes have climbed sharply, with exporters facing constrained container availability, uncertain sailing schedules and war-risk surcharges. Bal Krishan Garg, president of the Punjab Basmati Exporters Association, noted earlier that the cost of a single container to Dubai had risen from about $500 before the conflict to more than $5,000. In that environment, bulk vessel transport is being viewed as a route around the container bottleneck and toward greater cost predictability.</span></p><p class="ds-markdown-paragraph" style="margin: 16px 0px; color: rgb(15, 17, 21); font-family: quote-cjk-patch, Inter, system-ui, -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen, Ubuntu, Cantarell, &quot;Open Sans&quot;, &quot;Helvetica Neue&quot;, sans-serif; font-size: 16px;"><span class="">On the wider trade front, India's rice exports continue to grow in value terms. Between April and August 2026, India's rice export earnings rose 12.9% year-on-year to ₹45,739 crore, with basmati export earnings at ₹22,864 crore, up 11.6%. However, that growth has been driven largely by value rather than volume, and logistics cost pressure on Middle East routes continues to compress margins. IREF plans to dedicate a session to shipping at the Bharat International Rice Conference 2026, to be held in New Delhi from October 23 to 25, where the economics of bulk versus container transport and dispute prevention measures are expected to be discussed.</span></p><p class="ds-markdown-paragraph" style="margin: 16px 0px; color: rgb(15, 17, 21); font-family: quote-cjk-patch, Inter, system-ui, -apple-system, BlinkMacSystemFont, &quot;Segoe UI&quot;, Roboto, Oxygen, Ubuntu, Cantarell, &quot;Open Sans&quot;, &quot;Helvetica Neue&quot;, sans-serif; font-size: 16px;"><span class="">Looking ahead, the sustainability of the bulk shipping model will depend on bulk vessel availability, port handling efficiency and buyer acceptance of bulk delivery terms. IREF has stated its intention to extend the approach to other Gulf countries, though practical outcomes will vary by route and contract. For Indian rice exporters, the central challenge is maintaining price competitiveness in the Middle East while container shipping risk remains elevated in the near term—and the three-vessel bulk programme represents the first scaled attempt to do so through modal diversification.</span></p>