The government on Tuesday banned the export of organic broken non-basmati rice. (Non-Basmati Rice Export Ban Lifted) has been removed. After this decision, the stock market on Wednesday (Share Market) In this, the shares of those companies, which export rice abroad, have got wings. There is a rise of 2 to 4 percent in the shares of such companies. Let us tell you that this decision has been taken due to the stable domestic supply and fall in prices. Anyway, the consumption of such rice is very less in the country.
The Directorate General of Foreign Trade (DGFT) has said in a notification that the export of organic broken non-basmati rice, including organic non-basmati rice, will be subject to the same rules that were in place before the ban imposed in September. If experts are to be believed, the ban on export of broken rice has been lifted by DGFT. But, neither the rice exporter nor the Government of India can afford to continue with this export ban on other rice exporters for a long time.
How are the export figures
The government had banned export of broken rice in early September with an aim to increase domestic availability. India exports about 10,000-15,000 tonnes of organic rice (basmati and non-basmati) annually. During April-September in the current financial year, rice exports stood at $5.5 billion. According to the data of the Ministry of Commerce, it was $ 9.7 billion in 2021-22.
Charged 20 percent
This was followed by a 20 per cent duty on exports of non-basmati rice, aimed at reducing domestic supplies after a rise in prices in retail markets. In a notification, the Directorate General of Foreign Trade said that exports of organic broken non-basmati rice, including organic non-basmati rice, will now be subject to the rules prior to the September ban.
Effect of government’s decision on company shares
After the government removed the ban on these rice, there is a good boom in the shares of rice exporting companies. The shares of Chaman Lal Satia are seeing a rise of more than 2 percent. At present, the share of Chaman Lal Satia is trading at Rs 127.30 with a gain of 2.17 per cent.
On the other hand, the share of Kohinoor is up by 2.55 per cent at Rs 54.30. Shares of GRM Overseas are trading at Rs 360.50 with a gain of 4 per cent. At the same time, the shares of LT Foods are also seeing a rise of 4 percent and the price has become Rs 115.65 per share.
what do experts say
IIFL Securities Vice President Anuj Gupta said that “Kohinoor, GRM Overseas and LT Foods are looking good on the chart pattern. A staid investor can look at buying these rice stocks for medium to long term as the Indian government is in constant need of dollar to keep the fall of rupee under control. Therefore, chances are high that it will soon lift the ban on rice exports imposed in September 2022.
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