Ex-Mill Rate Meaning: Ex-Mill vs FOR vs FOB Rice Price

An ex-mill rate is the price of rice at the mill gate. It covers the rice, milled and packed, ready for loading at the mill. Transport, port charges and export costs are not included. The buyer, or a transporter the buyer pays, collects the goods from the mill.

In the Indian rice trade, ex-mill rates are usually quoted in rupees per quintal. One quintal is 100 kg, so 10 quintals make one metric tonne (MT).

What an Ex-Mill Rate Includes, and What It Does Not

An ex-mill rate normally includes:

• The rice, processed to the agreed grade (raw, steam, white sella or golden sella)
• Cleaning, sorting and grading at the mill
• Standard packing, if the quote says so

It normally does not include:

• Loading and transport from the mill
• Freight to the port and port handling
• Customs clearance and export documents
• Inspection, fumigation and certificates
• GST, where it applies, unless the quote says it is included

Always check what a quote includes. Two ex-mill rates can differ only because one includes packing and the other does not.

Ex-Mill vs Ex-Factory vs FOR vs FOB vs CIF

Each price term tells you where the seller's cost ends and who pays to move the rice:

• Ex-mill or ex-factory: the seller's cost ends at the mill gate, and the buyer pays the freight. Common in domestic trade and with traders buying in bulk.
• FOR (Free on Road or Rail): the seller delivers to the buyer's town or a named point and pays that freight. Common in domestic trade to wholesalers.
• FOB (Free on Board), for example FOB Mundra: the seller pays until the rice is loaded on the ship at the named port. Used in export when the buyer books the ship.
• CFR or CIF: the seller pays freight to the buyer's port, and CIF adds insurance. Used in export when the seller books the ship.

Ex-mill and ex-factory mean the same thing. Exporters such as MSG Exim usually quote FOB Mundra in US dollars for export buyers, and ex-factory in rupees for buyers in India.

How an Ex-Mill Rate Becomes an FOB Price

To compare an ex-mill quote with an FOB quote, build the FOB price step by step:

• Convert the ex-mill rate to a tonne: rate per quintal × 10 = rate per MT.
• Add export packing, if the ex-mill rate did not include it.
• Add inland freight from the mill to the port.
• Add port handling, customs agent (CHA) fees and loading.
• Add inspection, fumigation and certificate costs.
• Convert the total from rupees to US dollars at the day's rate.

The result is close to an FOB price. The exporter's margin and finance cost come on top.

Questions to Ask Before You Accept an Ex-Mill Rate

• Is packing included? Which bag type and size?
• Is GST included or extra?
• What are the broken percentage, moisture and average grain length?
• Who pays for loading at the mill?
• How long is the rate valid, and what are the payment terms?

Get Today's Rates

See our Today's Price page for indicative ex-factory and FOB Mundra rates. For a firm quote on any variety, contact us. To learn what moves FOB prices, read our guide Basmati Rice Export Price: What Decides the FOB Rate.