LT Foods Shares Crash 7% as Rice Stocks Tumble After Trump's Tariff Warning; KRBL, GRM Overseas Also Slip

Shares of major Indian rice exporters sharply declined on Tuesday after the U.S. President Donald Trump hinted at imposing new tariffs on Indian rice imports. The update triggered an immediate market reaction, dragging LT Foods, KRBL, and GRM Overseas into the red during early trade on Tuesday.

Trump's remarks at the White House event on December 8 have revived fears of a renewed U.S.-India trade dispute, particularly around agricultural commodities.

During a meeting at the White House, President Trump announced $12 billion in new support for U.S. farmers while also expressing frustration over agricultural imports from India and Canada.

He specifically pointed to Indian rice and Canadian fertiliser, stating that foreign producers were hurting American farmers.
Trump said, "They shouldn't be dumping... You can't do that. I'll take care of it."

Although he did not specify the measures he would implement, the statement was enough to trigger immediate volatility in Indian FMCG and agro-export stocks.

The U.S. is a major market for certain varieties of basmati and non-basmati rice, and any tariffs on Indian rice imports could hit exporters' profitability. Investors reacted swiftly, selling off rice-export stocks amid fears of higher tariffs on Indian rice entering the U.S.

LT Foods, KRBL, and GRM Overseas Fall Up to 7%

The sharpest decline was seen in LT Foods' share price, which tumbled 6.85% to Rs. 366.55, making it one of the worst-performing stocks of the session.

KRBL share price also dipped, falling 1.14%, while GRM Overseas shares plunged 4.46% as panic selling intensified across the rice-export segment.

LT Foods Issues Strong Medium-Term Outlook

In its recent analyst meet, LT Foods (LTFO) has issued an optimistic medium-term outlook following its recent analyst meeting, with expectations of strong growth across core and emerging product segments. The company plans to introduce these regional rice variants to the U.S. market as well to expand its global footprint. However, the potential tariff imposition may impact these plans.

The company currently holds nearly 30% market share in India's domestic basmati rice segment and close to 60% import share in the U.S. basmati rice market, which together contribute significantly to its revenue split (India at 30% and North America at 46%).

Systematix, in its report dated 2nd December, mentioned that "Management expects revenues to grow at a 12-13% CAGR over the next five years in line with its FY23-FY25 CAGR of 12%, while operating margins are projected to expand from the current ~12% to 14% in the next three to four years."

Disclaimer: The views and recommendations expressed are solely those of the individual analysts or entities and do not reflect the views of Goodreturns.in or Greynium Information Technologies Private Limited (together referred as "we"). We do not guarantee, endorse or take responsibility for the accuracy, completeness or reliability of any content, nor do we provide any investment advice or solicit the purchase or sale of securities. All information is provided for informational and educational purposes only and should be independently verified from licensed financial advisors before making any investment decisions.