KRBL is a rice processing and exporting company, and the world's largest rice miller. It is best known for its India Gate brand of basmati rice. The Govt, after banning wheat exports four months ago, has now put restrictions on four categories of rice exports – basmati rice and parboiled non-basmati rice –are still freely allowed but broken rice exports have been fully banned.
Even within raw non-basmati, only export of full grain consignments would be permitted on payment of 20% duty. This means non-parboiled non-basmati rice shipments will henceforth attract 20% duty.
Restrictions on rice exports have come in place because of deficient monsoon in UP, Bihar, Jharkhand and Gangetic West Bengal. Plus, with public stock of rice fast depleting, there is real worry about rice being sufficient within India.
This will affect just under 50% of India’s rice exports in terms of quantity and over a third by value.
KRBL is essentially more of a basmati rice company and the analysts are of the opinion that it will not get as impacted as others. That’s the only reason why after falling consistently for past couple of days, going on to hit a new high today at Rs.372.