Mumbai: Shares of major Indian rice companies fell significantly on Tuesday after US President Donald Trump suggested fresh tariffs on agricultural imports, targeting Indian rice and Canadian fertilisers.
LT Foods was the biggest loser, dropping 6.85 percent to Rs 366.55, while KRBL fell 1.14 percent and GRM Overseas declined 4.46 percent.
Investors reacted quickly, fearing that new US tariffs could lower export demand and affect company earnings.
Trump’s Remarks and Trade Context
Trump made these comments during a White House event announcing support measures for American farmers.
The remarks come amid continuing trade tensions between India and the US, raising concerns among exporters and market watchers about potential hurdles in agricultural trade.
India’s Global Rice Position
India is the world’s largest rice producer, with 150 million tonnes of output, holding a 28 percent share of global production.
It is also the top exporter, accounting for 30.3 percent of global rice exports in 2024–2025, according to the Indian Rice Exporters Federation (IREF).
However, exports to the US remain small, with India shipping only 234,000 tonnes in 2024-less than 5 percent of total global basmati exports. West Asian countries continue to be the largest buyers. The Sona Masoori variety is popular in the US and Australia.
Existing Tariffs and Investor Concerns
The US has already imposed a 50 percent tariff on Indian rice and a 25 percent levy on India’s Russian oil imports.
Trump’s hints of additional tariffs have heightened investor worries, leading to sharp declines in stock prices of rice companies listed in India.
Disclaimer: This article is for general information only and should not be taken as financial advice. Market conditions change quickly; please consult a certified financial advisor before making investment decisions.
