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FOB vs CIF for Rice Imports from India
The trade term decides who books the ship, who insures the cargo and where the risk moves from seller to buyer. Most Indian rice contracts use FOB, CFR or CIF. This guide explains each one in plain terms.
The three terms side by side
All three are Incoterms 2020 rules for sea freight. Risk passes when the goods are loaded on board at the Indian port in every case. The difference is who pays for what after that.
- FOB
- We deliver the cargo on board at Mundra or Nhava Sheva. You book and pay the ocean freight and insurance.
- CFR
- We book and pay the freight to your port. You arrange insurance. Risk still passes at loading.
- CIF
- We pay freight and minimum marine insurance (Institute Cargo Clauses C) to your port.
Which one to choose
Choose FOB if you already have a freight forwarder and good contract rates. You control the shipping line and transit time.
Choose CIF or CFR for a first order or small volumes. We already ship regularly from western India, so our rates are usually competitive and you get one landed-port price to compare.
If you want wider insurance cover than Clauses C, ask for it in the contract or buy your own policy under CFR.
What the price includes
An FOB price covers the goods, packing, inland transport to port, customs clearance in India, terminal handling and loading. CIF adds sea freight and insurance. Destination duties, port charges and customs clearance are always paid by the buyer.
Common questions
Where does risk pass under CIF?
When the goods are loaded on the vessel at the Indian port. Transit damage is claimed from the insurer, not the seller.
Do you quote CIF to any port?
Yes, to any port with regular container service. Quotes are valid for a stated period because freight rates move.
Is DAP or DDP available?
Only by special agreement. Most importers prefer to clear goods through their own customs broker.
Need a quote or a specification sheet? Send us your requirement or see the product catalogue.