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Rice stocks have experienced a notable surge, with share prices climbing up to 20% after the Indian government removed the minimum export price (MEP) for basmati rice. This policy shift is seen as a significant boost for the sector, especially in light of the challenges posed by previous export restrictions.
India’s Rice Export Landscape
Impact on Rice Stocks
Following the policy change, several prominent rice stocks have seen substantial gains:
1. KRBL Limited
As the leading global producer of basmati rice, KRBL Limited’s shares saw a rise of approximately 7.7% on the BSE, reaching Rs. 327.5. Despite a market capitalization of Rs. 7,370.3 crores, the company reported a significant 15.2% increase in revenue from operations, rising from Rs. 1,414 crores in Q1 FY24 to Rs. 1,199 crores in Q1 FY25. However, net profit saw a sharp decline of 55.4% YoY, falling from Rs. 195 crores to Rs. 87 crores.
2. LT Foods Limited
LT Foods Limited, a major player in the global FMCG sector with a market cap of Rs. 15,093.4 crores, experienced a 9.7% surge in its share price, hitting a new 52-week high of Rs. 446.95. The company’s performance reflects its strong position in the consumer food space, with investors reacting positively to the news.
3. GRM Overseas Limited
GRM Overseas Limited, another key player in India’s FMCG sector with a market capitalization of Rs. 1,663.5 crores, saw its shares climb by about 12.3% to Rs. 287. The company reported a 15.6% increase in revenue from operations, rising from Rs. 320 crores in Q1 FY24 to Rs. 370 crores in Q1 FY25, highlighting its strong financial performance amid the policy change.
4.Kohinoor Foods Limited
Kohinoor Food Limited has recently captured market attention with its stock soaring by 20% to hit the upper circuit limit on the BSE, reaching Rs. 46.82. This sharp rise comes in the wake of the Indian government’s decision to remove the minimum export price for basmati rice, a move that is expected to boost the rice sector.
The removal of the minimum export price for basmati rice has invigorated the sector, leading to significant stock price increases for major rice companies. As these stocks continue to benefit from the government’s policy shift, investors and industry stakeholders are closely watching for further developments in India’s rice export market
