Agri Export & What Does FOB Really Net?
Minus freight
An exporter's take-home from an FOB price is reduced by freight, marine insurance and other export costs. Net realisation = gross FOB − all these; the net per tonne guides which markets and crops pay.
Cost your consignment
Next: your true farm-gate equivalent is ₹66,200/tonne — only export if that beats the best domestic price after the same handling.
FOB looks high until freight, marine insurance and handling come out. Currency moves and demurrage can swing the net further — quote CIF carefully and hedge large forex exposure.
Agri export realisation — key facts
- Gross FOB
- FOB price × tonnage
- Freight
- shipping to destination
- Marine insurance
- cargo cover in transit
- Other costs
- handling, certification, docs
- Net realisation
- gross FOB − all costs
- Net per tonne
- net ÷ tonnage
- Currencies
- 8 supported
- Privacy
- Runs in your browser; nothing uploaded
A big FOB price is not your profit
A high FOB quote is tempting, but it is only the price at the ship's rail. By the time the consignment reaches the buyer, freight to the destination, marine insurance on the cargo, and a string of export costs — handling, fumigation, phytosanitary and quality certification, documentation and brokerage — have all come out of it. What is left is your net realisation, and it can look very different from the headline FOB once a distant market or heavy compliance is involved.
This tool starts from your FOB price and tonnage, subtracts freight, insurance and other costs, and shows the gross FOB, total costs, net realisation and net per tonne in 8 currencies. Use the net-per-tonne figure to compare markets and crops on a level footing and decide where to ship. Pair it with the Mandi Net Realization and Farmgate-to-Retail Margin tools to see the whole chain from field to foreign buyer.
See the real take-home
What the FOB price nets after every cost.
Compare markets
Net per tonne ranks destinations fairly.
Find the cost drains
Spot where freight or certification eats margin.
Choose what to export
Back the crops and markets that truly pay.
Frequently Asked Questions
What is net realization on an agri export?+
Net realisation is what the exporter actually takes home after the FOB price is reduced by all the costs of getting the goods to the buyer — ocean freight, marine insurance and other export costs such as handling, certification and documentation. It is the gross FOB minus all these deductions, and it is the number that really tells you whether a market or crop pays.
What is the FOB price?+
FOB (Free On Board) is the price of the goods loaded onto the vessel at the port of shipment, before international freight and insurance. It is the headline export price, but it is not your profit: from it you still subtract freight, insurance and the various export handling and compliance costs to arrive at net realisation. The tool starts from FOB and does that subtraction.
Which costs reduce the FOB price?+
Typically ocean or air freight, marine (cargo) insurance, and other export costs — port handling, container or packing charges, phytosanitary and quality certification, fumigation, inspection, and documentation or customs brokerage. The tool lets you enter freight, insurance and a combined other-costs figure, totals them, and deducts them from the gross FOB.
Why look at net per tonne?+
Net per tonne strips out volume so you can compare crops and markets on a like-for-like basis. A high FOB can still net little per tonne once freight to a distant port and certification costs are taken out. Net per tonne tells you which destinations and which commodities genuinely reward the effort, which is the basis for deciding what to export and where.
What is marine insurance here?+
Marine (cargo) insurance covers the goods against loss or damage during the international voyage. It is usually a small percentage of the consignment value but is a real cost that reduces realisation, and it is often required by the buyer or the trade terms. Enter it as one of the export costs and the tool factors it into net realisation.
Does this include duty drawback or incentives?+
This tool models the core deductions — freight, insurance and other export costs — to give net realisation from FOB. It does not automatically add export incentives such as duty drawback or RoDTEP. If you receive such incentives, you can treat them as a negative cost or add them to the net figure separately when comparing markets.
How do I improve net realisation?+
Lower the controllable costs — negotiate freight, consolidate shipments, choose nearer or better-connected ports, and streamline certification — or move up to higher-value FOB markets and grades. The tool lets you test each lever: change freight, insurance or other costs and watch the net realisation and net per tonne respond.
What is the difference between FOB and CIF?+
Under FOB the buyer pays freight and insurance from the port of shipment; under CIF the exporter includes Cost, Insurance and Freight in the price. This tool starts from your FOB price and subtracts your freight and insurance to show what you net — useful even on CIF deals, since the same costs come out of your realisation.
Can I use this for any commodity or country?+
Yes — the structure (gross FOB minus freight, insurance and other costs) applies to any agricultural export, anywhere. Choose your currency and enter your own FOB price, tonnage and cost figures. The terms FOB, CIF and net realisation are standard international trade language.
Is this an exact quotation?+
No — it's a planning estimate. Actual freight, insurance and handling depend on the route, season, container availability and your forwarder's quote, and certification costs vary by market. Use this tool to compare markets and crops and to plan margins, then confirm with firm quotes before you commit.