Ask five Indian suppliers for a price and you may get five numbers that cannot be compared — not because one factory is cheaper, but because each quote covers a different part of the journey. Before you negotiate, make sure every supplier is quoting on the same basis.
Ex-factory (EXW)
The price of the goods at the factory gate, packed. You or your agent arrange everything after that: local transport, export clearance, freight and insurance. It is the cleanest number for comparing manufacturers, because it strips out logistics.
FOR (Free on Rail / Free on Road)
A common Indian domestic term: the supplier delivers the goods to an agreed point inside India — a railway station, a warehouse or your consolidator — and the price includes that inland transport. Useful when several factories deliver to one point for consolidation.
FOB (Free on Board)
The supplier delivers the goods to the named Indian port, completes export customs clearance and loads them on the vessel. Freight and insurance from there are yours. For most overseas buyers, FOB at a named port (for example, Nhava Sheva or Mundra) is the most practical comparison price.
CIF (Cost, Insurance and Freight)
The supplier also pays ocean freight and basic insurance to your destination port. Convenient, but you lose control of the shipping line and the freight cost is often marked up inside the price.
How to compare quotes fairly
- Ask every supplier for ex-factory and FOB at the same named port.
- Confirm packing standard, MOQ and payment terms are identical.
- Check whether GST is included or excluded — exports are generally zero-rated, but domestic quotes may include it.
- Get the validity period of the quote in writing.
What we give buyers
Our Price Discovery Report lists ex-factory, FOB and FOR rates from 3–5 Indian manufacturers side by side, on the same basis, so you can compare like with like before committing.