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Trump Tariff Threat Sparks Panic: Indian Rice Stocks Plunge Over 6.5%

Shares of major Indian rice companies took a big hit on Tuesday. The drop came right after former US President Donald Trump suggested he might slap new tariffs on agricultural imports, specifically naming Indian rice. This spooked investors who are worried that American tariffs could hurt the export business and profits for these firms. While India is the world's biggest rice seller, its actual shipments to the US are a tiny fraction of its total exports.

Key Points: LT Foods, KRBL Shares Fall on Trump US Tariff Threat to Indian Rice

  • LT Foods shares fell sharply by 6.85% following Trump's tariff remarks
  • Other major rice exporters KRBL and GRM Overseas also saw significant declines
  • India is the world's top rice producer and exporter, but US imports are a small share
  • The threat revives ongoing trade tensions between the United States and India
2 min read

LT Foods drops over 6.5 pc, other Indian rice stocks also slide

Indian rice stocks like LT Foods plunged after Trump hinted at new US tariffs, sparking fears over export demand despite India's dominant global market share.

"The sudden slide reflected investor concerns that any new US tariffs could hurt export demand and impact earnings for these companies. - Market Analysis"

Mumbai, Dec 9

Shares of leading Indian rice companies fell sharply on Tuesday, after US President Donald Trump hinted that he may impose fresh tariffs on agricultural imports, specifically targeting Indian rice and Canadian fertilisers.

The statement triggered immediate selling in stocks linked to the rice trade. LT Foods was the biggest loser, with its share price slipping 6.85 per cent to Rs 366.55.

Shares of KRBL also declined, falling 1.14 per cent, while GRM Overseas dropped 4.46 per cent.

The sudden slide reflected investor concerns that any new US tariffs could hurt export demand and impact earnings for these companies.

Trump made his remarks during a White House event where he announced new support measures for US farmers.

His comments come at a time when trade tensions between the United States and India continue to resurface.

India remains the world’s largest rice producer, with an output of 150 million tonnes and a 28 per cent share in global production.

It is also the top exporter, accounting for 30.3 per cent of global rice exports in 2024–2025, data from the Indian Rice Exporters Federation showed.

Despite this large global presence, India’s rice exports to the US are relatively small.

According to the India Brand Equity Foundation, India shipped around 234,000 tonnes of rice to the US in the 2024 financial year, which is less than 5 per cent of its total global basmati exports of 5.24 million tonnes.

West Asian countries remain the biggest buyers of Indian rice. Among the varieties exported worldwide, the Sona Masoori variety is especially popular in markets like the US and Australia.

The US, under Trump’s leadership, has already imposed steep tariffs on India, including a 50 per cent tariff -- its highest -- along with a 25 per cent levy on India’s Russian oil imports.

- IANS

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Reader Comments

R
Rohit P
The article says US imports are less than 5% of our basmati exports. So why such a big panic selling? Seems like our stock markets overreact to every international headline. Long-term, our rice is the best in the world, demand will always be there.
D
David E
Watching from the UK. This volatility highlights the interconnectedness of global markets. Even a hint from a major economy like the US can cause ripples. Indian companies need robust risk management strategies for such geopolitical trade winds.
A
Aditya G
Basmati rice is our pride. The Middle East loves it. We should not worry so much about the US market. Maybe this is a good time for our companies to focus on branding and premiumisation for other markets. Let's turn this challenge into an opportunity.
S
Sarah B
As someone who buys Indian basmati here in the US, I hope this doesn't lead to price hikes for consumers. The quality is unmatched. It's unfortunate that trade politics can affect something as essential as food.
V
Vikram M
Respectfully, I think our trade negotiators need to be more proactive. We keep reacting to threats instead of building strong, predictable partnerships. This back-and-forth with tariffs hurts business confidence and planning. Time for a more strategic approach.
K
Kavya N
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