India's rice companies drop after govt directs cut in domestic rice prices

KRBL

19/12/2023 05:03

** Shares of rice manufacturers and exporters like KRBL
 KRBL.NS , LT Foods  LTOL.NS  and Chaman Lal Setia  CLSE.NS 
shed between 1% and 4.5%
    ** Fall after government directs rice industry associations
to ensure that the prices in domestic market are brought down to
optimal levels, with immediate effect
    ** "Domestic prices of rice are rising despite a good crop
this Kharif, ample stocks with Food Corporation of India and
various regulations in place on rice exports," says government
    ** A cut in domestic rice prices will likely weigh on the
revenue of rice manufacturers, according to two analysts

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))