homemarket Newsstocks NewsRice stocks bear the brunt as India bans export of broken variety, levies duty on non basmati
Rice stocks bear the brunt as India bans export of broken variety, levies duty on non-basmati
At the time of writing, shares of LT Foods were 4.3 percent down, while the stock of Kohinoor Foods was trading 3.3 percent lower. KRBL and Chaman Lal Setia were down 2.6 percent and 2.2 percent, respectively.
Shares of major rice companies — Kohinoor Foods, KRBL, Chaman Lal Setia Exports, and LT Foods — extended losses on Friday, September 9, after India placed an export ban on broken rice from September 9. The government has also imposed a 20 percent export duty on non-basmati rice from September 9.
| Stock | Change |
| Kohinoor Foods | - 4.37% |
| LT Foods | - 4.16% |
| Chaman Lal Setia | - 3.97% |
| KRBL | - 2.85% |
At the time of writing, shares of LT Foods were 4.3 percent down, while the stock of Kohinoor Foods was trading 3.3 percent lower. KRBL and Chaman Lal Setia were down 2.6 percent and 2.2 percent, respectively.
In a notification dated September 8, the ministry prohibited exports of broken rice from September 9. The ministry has also listed conditions under which the consignments of broken rice would be allowed for one week starting Friday.
Unmilled and husked brown rice will also be subject to a 20 percent export duty. Semi-milled or totally milled rice, other than parboiled and basmati rice, will also be subject to the 20 percent tariff.
The government has excluded parboiled and basmati rice from the export duty, which will come into effect from September 9.
India — the world's biggest rice exporter — is implementing strategies to augment supplies and calm local prices after below-average monsoon rainfall curtailed planting.
This year's loss of rice production is estimated to be 10 to 12 MT. Total rice sowing fell by 38.06 LHa this year, with many areas seeing deficient rainfall.
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