KRBL, LT Foods, Dhampur Sugar Mills: Rice, sugar stocks rally in trade; edible oil-linked stocks mixed

Shares of rice, sugar, and edible oil companies were trading actively in Monday's session (September 16) after a slew of government decisions during the weekend. 

Commerce and Industry Minister Piyush Goyal said the move will help boost exports and increase farmers' income.

"It has been decided to remove the current minimum export price (MEP) of USD 950 MT for issuing Registration-cum-Allocation Certificates (RCAC) for export of basmati rice," according to a communication from the Department of Commerce.

Last seen, KRBL was trading 4% higher at ₹316 while LT Foods was ruling nearly 6.5% higher at ₹433.70. 

Sugar stocks

Sugar stocks too were trading with gains as the Department of Food and Public Distribution (DFPD) has authorised sugar mills and distilleries to manufacture Rectified Spirit (RS) and Extra Neutral Alcohol (ENA) using sugarcane juice and B-heavy molasses.

In December 2023, the government prohibited the use of sugarcane juice or sugar syrup for ethanol production in the 2023-2024 ESY (December-November) to ensure adequate sugar availability for domestic consumption and keep prices in check.

Among individual names, Dhampur Sugar Mills was trading nearly 4% higher at ₹221.30. Shree Renuka Sugars was up 2.25% at ₹47.67 on the BSE. Balrampur Chini Mills was up 1.5%, while Triveni Engineering & Industries shares were trading over 4% higher at ₹493.55. 

Edible oil-linked stocks

Edible oil-linked stocks such as Adani Wilmar, Marico, and Patanjali Foods were trading mixed after the government on Friday raised the basic import tax on crude and refined edible oils by 20 percentage points on Friday as the world's biggest edible oil importer tries to help protect farmers reeling from lower oilseed prices. 

India meets more than 70% of its vegetable oil demand through imports. It buys palm oil mainly from Indonesia, Malaysia, and Thailand, while it imports soyoil and sunflower oil from Argentina, Brazil, Russia, and Ukraine.