LT Foods, KRBL, among other rice stocks rally up to 15% amid high global commodity prices; key factors to know

Rice stocks like LT Foods, KRBL, Chaman Lal Setia Exports, among others rallied during the trading session on Monday, August 24, as equity investors focused on the surging global prices for the commodity amid high demand, elevated costs and rising climate risk in the market.

Rice prices in the global market surged 4% in a single day last week on Friday, while domestic prices were trading around ₹4,111 per quintal on August 24.

With India being the largest exporter of rice to world nations, rice companies enjoy the direct benefit from the elevated prices in both domestic and global markets, which in turn boosts revenue from operations in a particular period.

Ministry of Commerce and Industry data showed that India’s rice exports increased by 16.48% to $1 billion in June 2026, in comparison to around $860 million in the same period a year ago.

Why are rice stocks rallying today?

Indian rice stocks were rallying during the trading session on Monday, August 24, as investors focused on the surge in global prices of the commodity amid the El Niño impact in Asian countries.

India, followed by Thailand, Vietnam, and Pakistan, are among the top rice exporting countries of the world, while Indonesia, the Philippines, the European Union, and the United States were among the top importers.

Global rough rice futures prices on the Chicago Board of Trade (CBOT) surged 4.1% to their intraday high of $15.20 per 2,000 hundredweight (CWT) during the trading session on Friday, in comparison to $14.60 per 2,000 CWT at the previous commodity market close.

Investing.com data showed that rough rice prices have surged 3.6% in the last five days, more than 5% in the past one month, and over 13% in the last three months.

The exchange data also showed that in the last six months, global rice prices have increased 43% due to the heightened demand in the market and the supply chain disruption due to the West Asia conflict.

Rice stocks in focus today

Tighter global supply concerns

According to a recent S&P 500 report, global rice markets, such as in Brazil, are facing tight local availability as producers and exporters hold back their inventories, awaiting higher prices.

Rice producers and exporters predicted earlier this month that commodity prices are expected to move even higher as they hold back stock of the food grain to control the supply chain dynamics.

Weather impact on domestic market

According to an Indian Rice Exporters Federation report from August 22, the Indian Kharif rice sowing is lagging in comparison to last year’s levels amid the uneven monsoon conditions in the country.

The trade body’s report also highlighted that India’s Kharif sowing is in the final stages, but the overall crop area remains 1.5% lower than last year’s levels as uneven monsoon conditions have affected sowing in several key crops in the country.

Investors will continue to monitor the monsoon patterns in the upcoming period, and the final crop output and production updates will be in focus after the full monsoon season in the country.

According to a Hindustan Times report citing the UK’s Meteorological Department, this year’s El Niño is set to become the most powerful one in more than a century, as Pacific waters are expected to heat up by more than 3 degrees Celsius.

Lesser rainfall is directly linked to the overall production of crops in a particular period; hence, any shortfalls in the same will impact the prices in the market amid a high-demand environment.

According to Ministry of Earth Sciences data released on July 30, 2026, the impact of the weather phenomenon is predicted to strengthen further during the December quarter.

“El Niño is likely to strengthen further during the October–December 2026 season and may reach a very strong category. However, its exact intensity and impacts over the Indian region depend on the evolution of coupled ocean–atmosphere conditions, of which El Niño is one factor,” as per the official announcement.

The central government also said that the Indian Meteorological Department (IMD) will continuously monitor the evolution of oceanic and atmospheric conditions and issue regular seasonal and monthly forecasts and advisories for the same.