KRBL shares slipped more than 2% today after US President Donald Trump hinted that Indian rice could be subject to higher import tariffs. The comment has sparked concerns about potential pressure on India’s rice export basket, particularly for companies that have exposure to the US market.
Trump suggested that the proposed tariffs are part of a broader plan to reduce the US trade deficit. Although basmati rice makes up a relatively small portion of America’s rice imports, any additional duty could influence pricing and demand—especially for premium and branded products that cater to niche consumer segments.
India remains the world’s largest rice exporter, shipping more than 18 million tonnes of basmati and non-basmati rice every year. Leading players such as KRBL, known for its India Gate brand, and LT Foods, the company behind Daawat, supply heavily to the Middle East and also cater to select Western markets, including the US.
Market analysts believe it is still early to calculate the financial impact since no formal tariff order has been issued so far. Even so, sentiment around export-focused rice companies may remain cautious in the short term until clarity emerges on the US administration’s final stance.
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