Indian Rice Stocks are trading higher on the prospect of good monsoon across the country for the past few days. The seasonal showers are 21% above average. India Meteorological Department (IMD) in June has raised its monsoon forecast by 2 percentage points to 98% of the long-term average. Although there was a momentary disruption over the GST of 5% on Branded rice but that noise has somewhat drowned in the good monsoon in the vast rice growing regions of the country.
Meanwhile, on the expectation of a bumper harvest, rice stocks including KRBL jumped up 8.4% at Rs 431.20 per share, Kohinoor Foods up by 2.4% at Rs 74.25 per share and LT Foods up by 1.8% at Rs 70.10 on bourses during Tuesday’s trade. While BSE FMCG index was trading lower by 5.5% or 591.84 points at 10,054 levels. The farm segment which is highly dependent on good rainfall employs more than half of India’s 1.3 billion population and sums for about 15% of India’s USD 2 trillion economy.