New Delhi: Rice stocks saw a tremendous rise on Monday. Kohinoor Foods hit an upper circuit of 20 percent. At the same time, shares of other companies related to the rice business also saw a significant rise.

Reasons for the rise in rice stocks

The central government had put a cap of $950 per tonne minimum export price (MEP) on Basmati rice. This means that rice companies cannot export Basmati at a price lower than this. Now the government has removed MEP. This can benefit rice companies on the export front.

Commerce and Industry Minister Piyush Goyal says that this decision will help in increasing the export of rice. Along with this, the income of farmers will also increase. In 2022-23, India's total export of Basmati rice was $ 4.8 billion in terms of value. At the same time, in terms of quantity it was 45.6 lakh tonnes.

Which stocks are up how much?

Talking about rice stocks, the highest rise was seen in Kohinoor Foods. It closed at Rs 46.83 with an upper circuit of 20 percent. At the same time, LT Foods jumped 9.72 percent, KRBL 7.67 percent and Chaman Lal Setia Exports 5.92 percent.

The government has now completely abolished MEP. This has led to exporters seeing an increased demand for Basmati rice. Also, this may help stabilize Basmati rice prices. However, the rise in rice company stocks is due to positive sentiments. Companies have already clarified in previous earnings calls that the average realization for Basmati rice exports is already higher than the minimum export price.