After the Indian government lifted the ban of export on non-basmati white rice, the shares of India's rice exporting company such as KRBL, Kohinoor Foods, LT Foods and Chaman Lal Setia Exports, saw a sharp surge in their stock price in the early trading hours on Monday (September 30).
Stock Market Response: Rice Shares Rally
In early trading hours, the shares of KRBL soared 3.7 per cent, reaching Rs 312 apiece. As of 12:22 pm IST the stocks of the company were trading at Rs 306.00 apiece, up by 1.75 per cent.
KRBL share performance |
Similarly, the shares of Kohinoor Foods surged 7.4 per cent, reaching a day’s high of Rs 47.45, while Chaman Lal Setia Exports hit an all-time high of Rs 313.95, gaining 7 per cent.
Kohinoor foods share performance |
Furthermore, the stock prices of LT foods also experience a jump, rising 4.3 per cent to Rs 412.20, during the intraday trading session.
LT food share performance |
Government Lifts Export Ban, Reduces Duties
The Indian government amended its export policy for non-basmati white rice, which had been prohibited since July 2023.
According to the Directorate General of Foreign Trade (DGFT), the policy now allows the export of semi-milled or wholly milled rice, provided it meets the Minimum Export Price (MEP) of USD 490 per tonne.
Representative Image | Representative Image/Canva
Furthermore, the export duty on parboiled rice has been reduced from 20 per cent to 10 pet cent.
Earlier this month, the government also scrapped the minimum export price for basmati rice to help farmers struggling to access lucrative markets in Europe, the Middle East, and the U.S.
