Reduction of up to 4% at LT Foods, Chaman Lal, KRBL since the export tax on cooked rice is still in place

Reduction of up to 4% at LT Foods, Chaman Lal, KRBL since the export tax on cooked rice is still in place

According to the Finance Ministry, there will be no expiry date to the 20 percent export tariff on parboiled potatoes beyond March 31.

Stocks of KRBL and LT Foods have decreased by 7% to 8% so far this year, while Chaman Lal Setia has increased by 0.5%.

Stocks of rice milling firms such as LT Foods, KRBL, and Chaman Lal Setia Exports saw a decline to 4% on February 22 after the government's decision to prolong the 20% export tax on parboiled rice until March 31.

This year, the stocks of Chaman Lal Setia have increased by 0.5%, whereas those of LT Foods and KRBL have decreased by 7-8%. By contrast, throughout the same time frame, the benchmark Sensex was either flat or negative.

In a statement, the Finance Ministry said that the 20 percent export tariff would remain in effect beyond March 31 without any expiration date. From August 25, 2023, until October 16, 2023, a charge on parboiled rice was in place in an effort to ensure sufficient supplies and manage prices.

Information from the agricultural ministry indicates that India's rice output would increase from 129.47 million tonnes to 135.54 million tonnes in the 2022–2023 crop year (July–June).

Consolidated net profit at LT Foods increased 52% year over year to Rs 152.6 crore in Q3FY24, while operating revenue increased by 9.1% to Rs 1,941.7 crore. In Q3FY24, Chaman Lal Setia's net profit climbed by 85% to Rs 37 crore, while the company's total revenue improved by 32% year over year to Rs 355 crore.

However, KRBL's earnings dropped 35% year over year to Rs 134 crore in Q3FY24 and its sales decreased 6% year over year to Rs 1,437 crore.