Stock Market Today: GRM Overseas, Sarweshwar Foods, and Kohinoor Foods Share Price Slide as Iran Export Worries Deepen

Market Performance

The stock market today saw notable pressure on basmati rice exporters, with GRM Overseas, Sarweshwar Foods, and Kohinoor Foods share price moving lower during Monday’s session.

• Kohinoor Foods share price slipped 3.37% to ₹24.91, making it the biggest loser among basmati rice stocks.
• Sarweshwar Foods share price fell by over 2%.
• GRM Overseas share price also declined by more than 2%.
• Peers like LT Foods and KRBL were not spared, edging down up to 1.3%.

The weakness came amid rising uncertainty around basmati rice exports, a key revenue driver for these companies.

Main News: Why Basmati Rice Stocks Are Under Pressure?

The fall in GRM Overseas, Sarweshwar Foods, and Kohinoor Foods share price is closely linked to disruptions in exports to Iran, one of India’s most important basmati rice markets.

At the heart of the issue is a sharp fall in the Iranian currency, the rial, after stricter US sanctions came into effect. As the rial weakened further against the US dollar, the cost of imports surged for Iran.

This led to a major policy shift:

• The Iranian government withdrew subsidies on food imports.
• Indian exporters were forced to pause shipments to Iran.
• As per media reports, basmati rice consignments worth nearly ₹2,000 crore are currently stuck at international ports, awaiting export clearance.

For rice exporters, this disruption has created immediate uncertainty around shipments, payments, and near-term cash flows.

Why Iran Matters to Indian Basmati Rice Exports?

Iran plays a crucial role in India’s basmati rice trade.

• It is the second-largest importer of Indian basmati rice, after Saudi Arabia.
• Iran imports nearly 12 lakh tonnes of basmati rice every year.
• The annual trade value stands at around ₹12,000 crore.
• The country has a strong preference for sela (parboiled) basmati rice, a key product for Indian exporters.

Any disruption in this corridor directly impacts companies like GRM Overseas, Sarweshwar Foods, and Kohinoor Foods, which have meaningful exposure to overseas markets.

Currency Shock Adds to Export Stress

The recent fall in the Iranian rial has worsened the situation.

• Before the Iran–Israel conflict, the exchange rate was around 90,000 rial per US dollar.
• Since then, the currency has slid to nearly 150,000 rial per dollar.
• Earlier, Iran provided a subsidised exchange rate of 28,500 rial per dollar for food imports.
• That subsidy has now been withdrawn, significantly raising the cost of imports.

With import costs rising sharply, demand has weakened, pushing exporters into a wait-and-watch mode.

Global Trade Concerns Weigh on Sentiment

Adding to the pressure, global trade tensions have also impacted investor mood.

• Last month, US President Donald Trump indicated the possibility of fresh tariffs on India’s rice exports to the US.
• This development further dampened sentiment across the basmati rice space.

Taken together, currency volatility, subsidy withdrawal, and trade policy uncertainty have created a challenging environment for exporters.

Company Snapshot

Here’s how key basmati rice stocks moved in today’s market session:

• Kohinoor Foods share price: Down 3.37% to ₹24.91
• Sarweshwar Foods share price: Down over 2%
• GRM Overseas share price: Down over 2%
• LT Foods / KRBL: Down up to 1.3%

The selling pressure reflects growing caution rather than company-specific developments.

Summary

The decline in GRM Overseas, Sarweshwar Foods, and Kohinoor Foods share price highlights how global events can quickly ripple through export-driven sectors.

Uncertainty around Iran-bound basmati rice shipments, a sharp fall in the Iranian rial, withdrawal of food import subsidies, and fresh global trade concerns have all combined to hit sentiment. With exports worth ₹2,000 crore currently stranded and Iran accounting for nearly ₹12,000 crore of annual imports, the market is closely watching how the situation evolves.

For now, basmati rice stocks remain under pressure as investors factor in near-term export disruptions reflected in stock market today movements.

Source: Livemint