Shares of rice exporting companies--KRBL and LT Foods, surged 4 percent each on September 30 after the government reduced export duty on parboiled rice to 10 percent from 20 percent earlier. The move comes as grain inventories in India, the world's top exporter, have swelled, with farmers preparing to harvest a new crop in the coming weeks.
At 09.49 am, shares of LT Foods and KRBL were trading at Rs 403.15 and Rs 303.75 on the NSE, respectively.
By cutting export duties, India's export prices are expected to drop, boosting shipments and thereby revenues for rice exporters like LT Foods and KRBL.
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Previously, India imposed a 20 percent duty on parboiled rice exports in 2023 after subpar rainfall impacted the crop. Now, the government has dialed back the export duty on brown and husked rice to 10 percent.
The export duty on white rice has been slashed to zero. Earlier this month, the government also scrapped the minimum export price for basmati rice to aid farmers who faced limited access to profitable markets such as Europe, the Middle East, and the United States.
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