Rice stocks look yummy

There is news in the market that 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 news is that the Govt is considering allowing white rice shipments with a fixed duty and might also scrap a 20% tax on parboiled rice exports and impose a fixed levy instead to discourage under-invoicing of cargoes.

In the first two months of FY25, current fiscal, total rice exports fell 21% (YoY) to 2.9 million tons while shipment of non-basmati rice fell 32% to 1.93 million.

According to the farm ministry, acreage stood at 6 million hectares (14.8 million acres) as of July 8, a jump of 19% (YoY).

Following news of this probablye relaxation, rice stocks are up in the green. India’s top rice exporter, KRBL rose 13% to Rs.348.80 and LT Foods rose 15.5% to hit a new 52-week high at Rs.297.95. Another rice stock, Chaman Lal Setia is also up in the green, rising 15% to Rs.237. LT Foods and KRBL, both are among the top five gainers on the BSE since the opening bell.