KRBL, LT Foods, Chaman Lal Setia shares fall amid escalating Iran-Israel conflict

Shares of the country’s leading basmati rice exporters have come under pressure over the last three trading sessions as geopolitical tensions in West Asia escalated sharply. With Israel intensifying its military strikes on Iran and retaliatory action by Iran, investor sentiment around exporters with exposure to the region has turned cautious.

KRBL, India’s largest basmati rice exporter by volume, has fallen 4% since June 12. LT Foods and Chaman Lal Setia, two other major players in the segment, have each declined 2.56%, while Kohinoor Foods is down 1.6%. The fall in stock prices came over concerns of possible disruptions in export demand from Iran, one of India’s most important buyers of premium rice.

Adding to concerns is the issue of trade receivables. Trade estimates suggest that Indian rice exporters currently have outstanding dues amounting to ₹1,000–1,200 crore from buyers in Iran. With the conflict intensifying and financial systems in the region under strain, there are rising fears that payments may be delayed, which could impact the cash flows and working capital cycles of these companies.

While demand from other West Asian nations such as Saudi Arabia and Iraq remains steady, the potential shortfall from Iran — combined with delayed payments — is likely to weigh on sectoral sentiment in the near term, analysts said.

As of 11:31 am, shares of KRBL traded 0.54% higher, LT Foods was trading on a flat note, Kohinoor Foods fell 0.33% and Chaman Lal Setia traded 0.55% higher.