Home / Markets / Stock Markets /  Why rice stocks are in focus today? Experts suggest these shares to buy

Rice stocks are in focus in Wednesday's session as the government on Tuesday lifted the ban on the export of organic non-basmati rice, including broken rice. The Directorate General of Foreign Trade (DGFT) in a notification has said that the export of organic non-basmati rice, including organic non-basmati broken rice, will now be governed by rules which were in place prior to the ban imposed in September.  

"Rice stocks may see some buying interest as ban on broken rice export has been lifted by DGFT. But, neither rice exporters nor the Government of India can afford to continue with this export ban for long on other rice exporters. So, any dip in rice stocks from here should be seen as an opportunity for bottom-finishing. Stocks like KRBL, Kohinoor Foods, LT Foods are some of the top quality rice stocks that one can think of buying if they dip," said Avinash Gorakshkar, Head of Research at Profitmart Securities.

The government had, in early September, banned the export of broken rice with an aim to increase domestic availability. India exports about 10,000-15000 tonnes of organic rice (basmatic and non basmati) annually. Rice exports stood at $5.5 billion during April-September this fiscal. It was $9.7 billion in 2021-22, according to the commerce ministry data.

This followed a 20% duty on the export of non-basmati rice aimed at shoring up domestic supplies after prices surged in retail markets. In a notification, the Directorate General of Foreign Trade said the export of organic non-basmati rice, including organic non-basmati broken rice, will now be governed by rules that prevailed before the September ban.

"Kohinoor, GRM Overseas and LT Foods are looking good on chart pattern. A positional investor can think of buying these rice stock for medium to long term as Indian government continuously need dollars to keep rupee fall under check. So, chances are high that it would soon lift the ban on rice export imposed in September 2022. Anuj Gupta, Vice President — Research at IIFL Securities.

The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.

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