“Indian Rice Export Restrictions Eased, Stocks Surge: LT Foods, KRBL, Chaman Lal Setia Exports See Double-Digit Gains”
In a significant development for the Indian rice industry, shares of major rice exporters Chaman Lal Setia Exports, KRBL, and LT Foods surged by as much as 13% in early trading on Tuesday. This surge comes in response to reports indicating that India, the world’s leading rice exporter, plans to ease restrictions on rice exports.
LT Foods saw its shares soar by 14.5% in early trading, reaching a new 52-week high of ₹296 each, while KRBL experienced a 13% spike to ₹348.70. Similarly, shares of Chaman Lal Setia Exports rose nearly 9% to ₹223 apiece during the session.
According to reports, India, the world’s top rice shipper, may relax restrictions on exports of some varieties to avoid a glut in the country before the new crop arrives in the market in October. 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.
This potential 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 in 2023. The report also noted that this would be good news for countries in West Africa and the Middle East that rely on India for their rice requirements.
India’s total rice exports dropped by 21% year-on-year to 2.9 million tons in the first two months of the fiscal year beginning April 1, with non-basmati rice shipments seeing a steeper decline. Farmers in India are currently in the midst of sowing their primary rice crop for the upcoming harvest, with planting activities expected to peak in July and harvesting scheduled from late September onwards.
The rise in acreage under rice cultivation, as reported by the farm ministry, follows a recovery in monsoon rains after a period of deficient rainfall last month. This development is crucial for boosting the rural economy, especially in states like Uttar Pradesh, Maharashtra, and West Bengal, where the Bharatiya Janata Party (BJP) has performed below expectations.
The government’s initiatives to address rural concerns and bolster the rural economy, such as releasing financial assistance for farmers and increasing the Minimum Support Price for crops, reflect a policy shift aimed at enhancing rural spending. Investors are advised to consult with certified experts before making any investment decisions.
