KRBL, LT Foods, other rice stocks rally up to 14% amid likely easing of export restrictions
India’s consideration to ease rice export limits surged KRBL shares by 13%, LT Foods to a 52-week high, and Kohinoor Foods by 11%. Plans include fixed duties on white rice, scrapping 20% parboiled rice tax. Indian exports hit 2.9 million tons this fiscal year; monsoon season planting is critical for West Africa and Middle East reliance.
Shares of have soared 14% following the news of India considering easing limits. surged 13%, reaching a high of Rs 349 while shares jumped 14.5%, hitting a new 52-week high of Rs 296 on the . Shares of jumped 11% to a high of Rs 46.50.The reaction comes in response to India, the world’s top rice shipper, considering relaxing restrictions on exports of some varieties to avoid a glut in the country before the new crop arrives in the market in October, Bloomberg reported.
The government is considering allowing white rice shipments with a fixed duty and may also scrap a 20% tax on parboiled rice exports and impose a fixed levy instead to discourage under-invoicing of cargoes, added the Bloomberg report.
Any such move could help cool benchmark Asian rice prices, which reached the highest in more than 15 years in January, following India’s move to start restricting sales of key varieties from 2023. That would be good news for some countries in West Africa and the Middle East that rely on the South Asian nation for most of their requirements of the food staple.
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India’s total rice exports slumped 21% from a year earlier to 2.9 million tons in the first two months of the fiscal year that started on April 1, according to government data. Shipments of non-basmati rice fell 32% to 1.93 million tons during the same period, it said.
Indian farmers are in the midst of sowing their main rice crop for the next harvest as the monsoon kicks off. Planting will peak in July and the grain will be collected from late September.
In the last one year, shares of LT Foods have given multibagger returns of 115% to its investors while those of Kohinoor Foods have increased by 25.2%. Meanwhile, KRBL shares have decreased by 4.5% in the same time period.
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Source: Stocks-Markets-Economic Times
