Mumbai: Shares of major Indian rice companies tumbled on Tuesday after US President Donald Trump suggested he may impose fresh tariffs on agricultural imports, specifically mentioning Indian rice and Canadian fertilisers. The remarks triggered sharp market reactions amid trade uncertainty.
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.
File Photo: IANS
–IANS
