Kohinoor Foods shares skyrocketed by 15% to a day’s high of Rs 44.85, while KRBL surged 6.6% to Rs 324.30. Chaman Lal Setia Exports’ shares went up by 6% to Rs 244.10.
Meanwhile, Adani Wilmar shares rose 4% to Rs 375.85.
With the export price removed by the government, ET reported that exporters have started receiving enquiries from buyers worldwide for lifting basmati rice from India.
Basmati rice exporters noted that the government’s decision would help stabilize the price of basmati rice, which has been falling due to fewer global orders. Wholesale prices of basmati rice are expected to increase from Rs 55 per kg to Rs 65 per kg initially and stabilize at this level.
In October last year, the government reduced the MEP for basmati rice shipments to $950/tonne from $1,200/tonne, which was set on August 25 to restrict ‘illegal shipment of white non-basmati rice’ whose shipment was banned in July last year.In FY24, India exported a record 5.24 million tonnes (MT) of aromatic rice valued at $5.83 billion.“Exporters have started sending enquiries for basmati rice since last evening. This will further pick up next week. The government’s move will help stabilize the price of basmati rice in the market,” said Vijay Setia, past president of the All India Rice Exporters Association (AIREA) and managing director of Chaman Lal Setia Exports.
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Incidentally, due to the MEP of $950 per tonne, many buyers from India had shifted to Pakistan, which was selling basmati rice at a lower price than India.
Geographical Indication-tagged basmati rice is grown in 70-odd districts in Punjab, Haryana, western Uttar Pradesh, Jammu & Kashmir, and Uttarakhand.
The aromatic and long-grain rice commands a premium in global markets. India holds about 80% of the world aromatic rice market, while Pakistan holds around 20% of basmati rice exports.
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