Shares of leading basmati exporters KRBL and LT Foods are likely to be in focus today after US President Donald Trump signalled that Indian rice could face higher import tariffs. The statement has raised concerns about potential pressure on India’s rice export basket, especially for companies with exposure to the US market.
Trump has indicated that tariffs on Indian rice may be considered as part of a broader effort to narrow the US trade deficit. While basmati rice accounts for a relatively small share of US rice imports, any additional duty could affect pricing and demand, especially for higher-value branded products.
India is the world’s largest rice exporter, shipping over 18 million tonnes annually across basmati and non-basmati categories. Companies such as KRBL (which sells the India Gate brand) and LT Foods (Daawat brand) export both to the Middle East and to select Western markets, including the US.
Analysts say it is too early to gauge the financial impact, as no formal tariff notification has been issued yet. However, sentiment around export-oriented rice stocks may turn cautious in the near term until there is clarity on the US administration’s final stance.
Both KRBL and LT Foods have not yet issued statements regarding the potential tariff move.
