A reliable chemical FOB price from India is a written quotation that names the loading port, the exact product specification, the pack, the quantity and the unit basis, the validity period and the payment terms. A bare number with none of these cannot be compared with another offer.
FOB means free on board: the seller delivers the goods on board the vessel at the named Indian port and you take over from there, according to Incoterms 2020. Everything before loading is in the seller's price. Read FOB, CIF or DAP for how the terms differ.
What a proper FOB quotation contains
Insist that each quotation includes the following items:
- The named port of loading, such as Mundra, Nhava Sheva, Hazira or Kandla, because FOB without a port is incomplete.
- The product name, grade and the specification it will meet, with the test methods.
- The pack type and size, and whether the weight is net or gross, so that the unit is clear.
- The quantity, with the tolerance allowed either way.
- The currency and the unit, for example per tonne net.
- The validity of the offer in days and the shipment period.
- The payment terms, and the documents that trigger payment.
What FOB includes and leaves out
Under FOB the seller handles export clearance and delivery to the vessel, including charges at the Indian terminal. You handle the main freight, insurance and import clearance. For chemicals, ask who arranges the booking and who bears the dangerous goods documents and packaging costs at origin, and put it in the contract.
If your cargo is dangerous goods, a seller needs a line that accepts the cargo. Many buyers choose to nominate their own forwarder, or choose a different term. Our guide on the best Incoterm for chemical imports covers that choice.
How to avoid vague numbers
- Send every supplier the same enquiry, with specification, pack, quantity, port and delivery period.
- Reject offers that omit the basis, validity or specification. Ask the supplier to complete them.
- Ask what the price assumes about raw materials, and what would change it.
- Check that the seller is the producer or can name the source. See how to tell a chemical trader from a manufacturer.
- Compare the offers using comparing chemical quotes on an equal basis.
Turn the quote into a contract
Once you choose a supplier, copy the quotation terms into the purchase order and contract. Cover the specification, the right to reject off-spec lots, the independent testing point and the payment steps. See what a chemical purchase contract should include.
Questions to ask before you accept
Ask whether the price includes export packaging, marking and loading into the container. Ask who pays terminal and documentation charges in India, and whether the price changes if the sailing date moves.
Ask what happens if the goods fail your specification: who retests, who pays, and whether you can reject the lot before shipment. A supplier that answers these clearly is easier to trust than one that offers a very low number.
Next step
We find and audit manufacturers, check samples and documents, have lots tested, and supervise loading. We do not publish prices; a real FOB quote for your product comes from a sourcing review, so book a free sourcing review.