5 March 2026 · 5 min read
FOB, CIF and true landed cost on Indian agri imports
Why the cheapest FOB offer is often the most expensive container, and how to rebuild every quotation on a comparable landed basis.
What each Incoterm actually covers
Under FOB, the seller's cost ends when the goods are loaded on board at the named Indian port; ocean freight, insurance and everything at destination are yours. Under CFR the seller adds freight, and under CIF freight plus a minimum insurance cover. Risk still passes at loading in all three.
The costs that appear after FOB
Ocean freight, marine insurance, destination terminal handling, customs duty and any agricultural levy, port storage if clearance is slow, inland haulage, and finance cost on the payment instrument. On low-value bulk commodities these can rival the goods value itself.
Comparing offers correctly
Convert every offer to the same Incoterm, the same currency and the same quantity basis before comparing. A supplier quoting a lower FOB but a heavier packing specification may lose the advantage in freight, because volume rather than weight often fills the container first.
Build the number before you commit
Our landed-cost calculator lets you enter the FOB offer and add freight, insurance, duty and inland charges to reach a per-container and per-kilogram delivered cost. Run it on every offer, including ours.
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