Rice Stocks Fall After US President Signals New Tariffs on Indian Imports

Indian rice stocks saw a sharp decline on Tuesday, December 9, 2025, as concerns rose over potential new tariffs on agricultural imports by the US. Major exporters like KRBL, LT Foods, and GRM Overseas witnessed significant price drops in the domestic market.

This development unfolds amid rising trade tensions between Washington and New Delhi, showing how sensitive global markets are to policy decisions.

Market Performance: Rice Stocks in Focus

Tuesday’s trading session saw the following impact on key rice stocks:

• LT Foods share price: ₹366.55, down 6.85%
• KRBL share price: down 1.14%
• GRM Overseas shares: down 4.46%

The decline reflects investor reaction to the US President’s warning about imposing additional tariffs on Indian rice imports.

US President's Remarks on Rice Imports

The announcement was made during a White House event aimed at unveiling new assistance for US farmers. Key points from the remarks:

• The US administration cited concerns over the “dumping” of Indian rice into the US market.
• Low-cost imports from countries like India, Vietnam, and Thailand were highlighted as harming US farmers’ competitiveness.
• The potential tariffs are part of a broader strategy to support American agriculture ahead of the midterm elections.

This development underscores the ongoing trade friction between the US and India, especially in sectors critical to rural economies.

India’s Position in Global Rice Exports

India continues to be a dominant force in the global rice market. Some highlights:

• Largest rice producer in the world with 150 million tonnes annually.
• Holds a 28% share of the global rice market.
• Top rice exporter, accounting for 30.3% of worldwide exports in 2024–2025.
• Exports to the US in the 2024 fiscal year: ~234,000 tonnes, under 5% of total global basmati rice exports (5.24 million tonnes).
• West Asia remains the primary market for Indian rice.

Among popular varieties, ‘Sona Masoori’ enjoys strong demand in countries like the US and Australia. Despite the potential tariffs, India maintains a competitive price advantage over other exporters such as Vietnam and Pakistan.

Summary

The US announcement created immediate volatility in the Indian stock market:

• Rice stocks fell sharply: LT Foods (-6.85%), KRBL (-1.14%), GRM Overseas (-4.46%)
• US tariffs on Indian rice remain a political and economic concern.
• India continues to lead in global rice production and exports, maintaining a significant market share despite trade tensions.

Investors tracking rice stocks today and the KRBL share price witnessed a clear example of how geopolitical factors can influence domestic stock movements.