Rice stocks jump up to 7% as government lifts ban on non-basmati white rice

Shares of Kohinoor Foods jumped 7.4% to its day’s high of Rs 47.45 while the shares of Chaman Lal Setia Exports rose 7% to their new all-time high of Rs 313.95. Meanwhile, LT Foods shares price went up by 4.3% to Rs 412.20 whereas KRBL shares were up by 3.7% to a high of Rs 312.

“The export policy for non-basmati white rice (semi-milled or wholly milled rice, whether or not polished or glazed) …is amended from prohibited to free, subject to MEP of $490 per tonne with immediate effect and until further orders,” the directorate general of foreign trade (DGFT) said in a notification.

The exports of non-basmati white rice were prohibited by the government since July 20, 2023, but had said that the exports would be allowed on the basis of permission granted to other countries to meet their food security needs and based on requests from those countries.

It has exported rice to Nepal, Mauritius, Namibia and other African nations.

As reported by ET earlier, a leading rice exporter from Bengal, Halder Venture Limited Managing Director & CEO Keshab Kumar Halder lauded the government’s move. “This strategic move will not only boost the income of exporters but also empower farmers, who can expect higher returns with the impending arrival of the new kharif crop,” he said.West Bengal is the largest rice-producing state in India, contributing over 15% to the country’s total rice production. The state has a favorable climate and fertile soil, making it ideal for rice cultivation. Major rice-producing districts in West Bengal include Birbhum, Burdwan, Hooghly, and Nadia.Also read: BEL shares under spotlight after government nod for JV with Israel Aerospace Industries

Additionally, the government of India on Friday had also reduced the duty on export of parboiled rice from 20%to 10%, a move that comes a year when the Centre imposed 20% duty on export on the staple food, amidst fears that India could suffer from shortage in its production.

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