LT Foods slips 7%, hits 6-month low; why is the basmati rice stock falling?

As per reports, US President, Donald Trump is expected to levy tariffs on rice imported from India

LT Foods share price today

 

LT Foods share price hit a six-month low on the BSE today, declining 7 per cent to ₹365 in Tuesday's intraday trade, on reports that US President, Donald Trump is considering imposing tariffs on rice imported from India.

 

The stock price of one of the leading global fast moving consumer goods (FMCG) companies was quoting at its lowest level since May 15, 2025. It has plunged 30 per cent from its 52-week high of ₹518.35, which it touched on July 17, 205. The stock had hit a 52-week low of ₹290.05 on April 7, 2025.

 

Meanwhile, other rice stocks, including GRM Overseas, Chaman Lal Setia, and KRBL also fell in the range of 2.7 per cent to 5.4 per cent in the intraday trade. By comparison, the BSE Sensex index was down 557 points (0.65 per cent) at 10:12 AM.  CATCH STOCK MARKET LIVE UPDATES TODAY

Why is the basmati rice company's stock price under pressure?

 

LT Foods is a global leading player in the specialty rice and rice-based foods business, across India, the US, the UK, Europe, the Middle East, the Far East, and the Rest of the World. The company's flagship brands include DAAWAT, one of India's most consumed Basmati brands, and Royal, which is widely sold in North America.

 

As per media sources, US President, Donald Trump is expected to levy tariffs on rice imported from India.

 

"India's rice exports to the US stood at ~$380 million during 2024, out of which the majority of the exports were basmati rice. Further, as of FY25, North America's share in India's basmati rice exports stood at 6 per cent in volume terms. Companies such as LT foods have significant exposure to the US with 46 per cent of its revenues from the region," ICICI Securities said in a note.

 

Meanwhile, according to the company, North America accounts for 46 per cent of its revenue and continues to be a key growth driver with a 47 per cent year-on-year revenue growth, the normalized growth of 16 per cent, excluding Golden Star and US tariff.

 

The company's flagship brand revenue, 'Royal' holds a dominant position in the US, commanding a 54 per cent market share in the region and 61 per cent share in the Basmati Rice import in the US. 'Golden Star' is the number one jasmine rice brand in the region.

 

Notwithstanding the ongoing headwinds of a 50 per cent tariff imposition by the US, which is LT Food's key market, India Ratings and Research (Ind-Ra) expects LT Food's Ebitda to remain healthy over the near to medium term given the continued growth in other geographies and limited competition in the US basmati rice market with Indian suppliers enjoying over 80 per cent share (LT Foods: 55 per cent-60 cent) and the products largely non-discretionary nature, enhancing LT Food's ability to pass on the tariff impact without significant volume loss.

 

Furthermore, in June 2025, the United States Department of Commerce, International Trade Administration, imposed a 340 per cent countervailing duty of ₹170 crore on LTF's subsidiary, Ecopure Specialities Limited (ESL), for its ₹50 crore soybean sales in 2023 citing 'adverse facts available' methodology.

 

The case is pending hearing with the final verdict expected by January 2026. This development, along with the anti-dumping duty, has affected the soybean export business, weakening ESL's operations. Ind-Ra believes that LT Foods has adequate liquidity to absorb the penalty, but the outcome will remain a monitorable, the rating agency said.