Shares of Kohinoor Foods Ltd slipped 1.88% to Rs 26.66 in early trade on Tuesday, Dec 9, extending the weakness seen across India’s rice-exporting companies after fresh tariff concerns emerged from the United States.
The sector-wide decline comes after US President Donald Trump warned of potential additional tariffs on agricultural imports, with a specific mention of Indian rice, accusing exporters of “dumping” low-cost varieties into the US market. The comments were made during a White House event focused on support measures for American farmers — a politically important group ahead of the midterm elections.
Trump noted that cheap imports from India, Vietnam, and Thailand were hurting US farmers already dealing with inflationary pressures and earlier trade frictions. Any further tariff actions — even if the US accounts for less than 5% of India’s FY24 basmati export share — create uncertainty for companies dependent on exports, impacting investor sentiment.
As a result, stocks including KRBL, LT Foods, GRM Overseas, and Kohinoor Foods have seen selling pressure in today’s session despite the limited direct revenue exposure to the US market.
India remains the world’s largest exporter, commanding over 30% of global rice exports, and continues to enjoy pricing advantages over competitors like Vietnam and Pakistan. Still, tariff-related headlines tend to weigh on short-term sentiment, which explains today’s dip in Kohinoor Foods shares.
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