Hello Sir,

Hope you are doing well.

The Govt. of India recently imposed a ban on non-basmati rice export. This has resulted in increase in demand for Basmati rice in export markets. The realizations have also increased.

No wonder, major basmati rice listed stocks like LT Foods, Chaman Lal and KRBL have performed well.

Source: Chaman Lal Q1 FY 24 presentation

We recently went through the con-call of KRBL, the company behind the well known India Gate basmati rice brand.

Below, we have shared interesting insights from the Q1 FY 24 con-call of KRBL to understand the current situation and the outlook for the industry. Hope you find the details useful for your own investments or to add the stock to your watch list.


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KRBL – Insights from Q1 FY 24 con-call of the company

– General Details

  • Basmati production for marketing year 22-23 is around 9.5 million metric tonnes, about 12% higher than last year
  • India basmati exports grew 16% in volume terms and 46% in revenue terms in FY’23
  • Area under basmati expected to be higher in the new crop 2023 due to good prices realized by the farmer last year
  • There’s a a forecast of increase in production by 12% over last year

– Realizations

  • Realization are going to increase. You see the market as on date is on fire. In Q2, there will be 5-7% jump in realizations
  • In Q1, basmati export realization – 98,000 per MT
  • In Q1, domestic basmati realization – 68,500 per MT

– Regulatory change

  • The regulations imposed from 1 August 2023 are poised to bring about a significant shift in the basmati rice landscape
  • One notable change expected with the implementation of these regulations is the probable preference shift among consumers from loose basmati to packaged ones



Disclaimer: This is not a recommendation to buy/sell any of the stocks mentioned above. The securities quoted are for illustration only and are not recommendatory.


Best Regards,

Ekansh Mittal
Research Analyst
Web: https://www.katalystwealth.com/


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Whether the research analyst or research entity or his associate or his relative has any financial interest in the subject company/companies and the nature of such financial interest – Yes, in LT Foods and Chaman Lal Setia

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