 "Chamanlal, KRBL, others pop upto 6% as govt lifts ban on broken rice export")
Rice stocks rally: Rice-related stocks were in demand on Monday, March 10, 2025, as these stocks rallied up to 6.5 per cent in intraday deals on BSE.
Among individual stocks, Chaman Lal Setia led the charge with a gain of up to 6.46 per cent to an intraday high of Rs 317.90 per share, followed by Sarveshwar Foods (up 6.17 per cent at Rs 7.74), L&T Foods (up 3.36 per cent at Rs 362), GRM Overseas (up 2.98 per cent at Rs 251.10), KRBL (up 2.54 per cent at Rs 278.20) and Kohinoor Foods (up 0.33 per cent at Rs 36).
The northward move in the rice stocks came after the government, via a notification on March 7, permitted the export of 100 per cent broken rice, following a surge in inventories that reached a record high in early February—almost nine times the government's target.
Allowing exports of 100 per cent broken rice is expected to help reduce surplus stocks in the world's largest exporter of rice, according to reports. It could also provide lower-cost grain to poorer African nations, while benefiting Asian animal feed and ethanol producers that rely on this grade of rice.
India had previously banned the export of 100 per cent broken rice in September 2022 and imposed restrictions on all other rice grades in 2023 due to concerns over production stemming from poor rainfall.
However, with the supply situation improving after the country harvested a record crop, the government lifted the export restrictions on all rice grades except 100 per cent broken rice.
"We expect to export about 2 million tonnes of 100 per cent broken rice in 2025," said BV Krishna Rao, president of the Rice Exporters' Association (REA).
In 2022, India exported 3.9 million metric tonnes of broken rice, primarily to China for animal feed and to African countries like Senegal and Djibouti for human consumption. READ MORE
At 11:00 AM, GRM Overseas was trading 2.92 per cent at Rs 256.95, Chaman Lal Setia (up 1.46 per cent at Rs 302.95), LT Foods (up 0.97 per cent at Rs 353.60), KRBL (up 0.22 per cent at Rs 271.90), Sarveshwar Foods (down 2.06 per cent at Rs 7.14), Kohinoor Foods (down 0.61 per cent at Rs 35.66). In comparison, BSE Sensex was trading 0.37 per cent higher at 74,605.77 level.