KRBL, LT Foods, other rice stocks rally up to 14% amid likely easing of export restrictions

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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