Shares of GRM Overseas Ltd fell 3.68% to Rs 447.70 on Tuesday, Dec 9, as sentiment across Indian rice-exporting companies weakened following warnings from US President Donald Trump about imposing additional tariffs on agricultural imports, specifically Indian rice.
At a White House event, Trump criticised what he described as the “dumping” of low-cost Indian, Vietnamese, and Thai rice into the US market. He indicated that his administration may consider further tariff actions to protect American farmers, an important domestic political constituency. This rhetoric has raised concerns among investors about potential trade restrictions on Indian rice exports.
The prospect of higher US import duties triggered pressure on stocks such as KRBL, LT Foods, and GRM Overseas, with traders anticipating near-term challenges for the sector. While the US accounts for less than 5% of India’s basmati rice exports, any tariff escalation creates uncertainty around pricing, competitiveness, and export volumes.
India remains the world’s largest rice producer and exporter, holding around 30% of global rice exports, according to the Indian Rice Exporters Federation (IREF). Despite this strong position, the warning from the US has temporarily dented market sentiment, contributing to the decline in shares of rice manufacturers, including GRM Overseas.
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