Rice stocks spread thier aroma

LT Foods today rose almost 15% to Rs.83.55, very close to its 52-week high of Rs.84.70; Kohinoor Foods rose over 9% to Rs.785.50 while Chaman Lal Setia hit the 20% UC at Rs.143.15, a new high. On the other hand, KRBL rose 1.5% to Rs.622.90 but soon slipped down and is now in the red

As one can see these are ‘rice’ stocks and this great optimism on the counter has come in after the  Agricultural and Processed Food Products Export Development Authority (Apeda), released a report stating that farms exports, driven mainly by rice, basmati as well as non-basmati rose 13.5% (YoY) for the April-Sept period.

Rice exports contribute 44% to the farm export basket and specifically, export of rice rose 30% in dollar terms and 25% in rupee terms. The surge can be attributed to increased European buying as they expect supply to come down after tighter quality checks in the region came into effect from 1st Nov’17.