KRBL, LT Foods, Kohinoor shares rise as Centre removes Minimum Export Price on Basmati

Shares of rice exporting companies such as LT Food, Kohinoor Food, KRBL extended gains in trade on September 16, after Centre removed the minimum export price (MEP) on Basmati rice over the weekend.

LT Foods as well as KRBL were higher by 6 percent each, while Kohinoor Foods shares hit upper circuit at 20% in afternoon trade at 2:30pm, on the rub off due to removal of the MEP.

Earlier, Basmati rice could only be exported above a fixed price, or minimum export price (MEP), which was revised lower to $950/tonne from Rs 1200/tonne in 2024. The international price of variants of Basmati had been falling between 15-25 percent in the recent, past due to fewer orders. For FY24, the export of Basmati rice fell by 10 percent to 4.10 million tonne. Experts say the latest decision could help rice exporting companies in stabilise the prices.

India is the world's largest exporter of rice, and holds 85% of the market for basmati exports. During FY24, the segment showed 15% growth in volume. KRBL had informed investors that India's Basmati exports have been seeing strong demand from US and Middle East, with the gulf region accounting for nearly 3/4th of total Basmati exports.