3 Rice Stocks to Watch as Trump Hints at Tariffs on Rice Imports

Rice exporter stocks in India fell sharply on 9 December 2025, following US President Donald Trump's threats of new tariffs on Indian rice imports.

Trump, during a White House meeting on 8 December criticised "dumping" of rice into the US market, harming American farmers, and signalled aggressive tariff actions. This revived trade tensions, despite prior tariff hikes to 50% on some Indian goods.

Here are 3 rice stocks that you can watch following the hints of tariffs.

#1 LT Foods

First on our list is the stock of LT Foods.

LT Foods is a leading player globally in the specialty rice and rice-based foods business for more than last 70 years. The company's flagship brands include 'DAAWAT', has a good presence in North America.

LT Foods has an integrated "Farm to Fork" approach with a well-entrenched distribution network, global supply chain hubs, automated state-of-the-art and strategically located processing units in India, the US, and Europe, and a robust distribution network of 2,000+ distributors across the globe.

Financial Highlights of LT Foods

Source: Equitymaster

During Q2 FY'26, LT Foods achieved its highest ever quarterly revenue of Rs 27,720 m representing growth of 30% (normalised growth of 12% excluding Golden Star and US Tariff) and EBITDA of Rs 3,160 m representing growth of 24% compared to Q2 FY25.

The net profits of the company surged to Rs 1,630 m vs 1,418 m YoY.

Moving ahead, LT Foods has expanded its presence in the European processed can food market through the acquisition of Hungary-based Global Green Kft.

This acquisition marked entry into the €15 billion (bn) market segment. Under its organic business arm, Nature Bio Foods has entered the B2C segment in Europe with the inauguration of a new facility in Rotterdam.

The revenue acceleration is expected to begin in FY27, with an estimated incremental revenue of Rs 4,000 m over the next five years, driven by this strategic investment.

Overall, LT Foods exhibits good long-term prospects as a diversified rice exporter with a strong brand portfolio but faces near-term headwinds from US tariff threats under President Trump.

#2 GRM Overseas

Next on our list is the stock of GRM Overseas.

GRM Overseas is the third largest basmati rice exporter in India. The company has an experience of over four and half decades of exporting rice to more than 38 countries, including the UAE, Iraq, Australia, Israel, UK and the US.

Financial Highlights of GRM Overseas

Source: Equitymaster

On the financial front, total revenue of the company was Rs 3,721 m in Q2FY26, which grew 16.2% YoY from Rs 3,202 m in Q2FY25.

The EBITDA for Q2FY26 was at Rs 245 m, up by 53.9% YoY from Rs 159 m in Q2FY25. The EBITDA margin was 6.6% in Q2FY26, an expansion of 161 bps.

The net profits of GRM Overseas was Rs 148 m, which surged 60.5% YoY.

Moving ahead, the company has established a fully owned subsidiary in the UAE to act as a distribution and marketing centre for customers in the UAE and nearby international markets.

Additionally, GRM Overseas has signed an agreement with Seven Star Company in Saudi Arabia, to distribute its popular basmati rice brand '10X' throughout the Saudi market.

The company is also actively participating in important exhibitions and events around the world, such as those in Istanbul, Turkey, and Cologne, Germany, the current quarter. These efforts are aimed at boosting GRM's brand visibility on a global scale.

Going forward, the company believes that by fostering innovation and diversifying its product offerings, it can better meet the evolving needs of consumers in both, the domestic and the international markets.

#3 KRBL

Next on our list is KRBL.

KRBL Ltd, is focussed on the manufacturing and marketing process of rice products. Over the years, the company has successfully innovated its manufacturing units using advanced technologies.

Financial Highlights of KRBL

Source: Equitymaster

On the financial front, KRBL reported revenues of Rs 15,111 m in Q2 FY26, against Rs 12,705 m YoY. Net profits of the company were Rs 1,721 vs Rs 1,027 m YoY.

Moving ahead, based on the company's strong financial position and healthy internal accruals, KRBL is set to enter the real estate sector.

The core agri-food business continues to generate robust cash flows with minimal future capex and working capital needs.

This has given the company an opportunity to deploy surplus funds away from low-yield treasury instruments and leverage its underutilised bank.

Recently, the company was declared a successful bidder for approximately 125 acres of land spread across 71 parcels in Samalkha District, Panipat Haryana at a total bid value of about Rs 4,030 m.

The company also holds significant land reserves, particularly in Ghaziabad. KRBL plans to monetise the approximately 110-acre parcel currently valued at about Rs 25 bn while relocating its existing plant over the next 2- 3 years.

India's leadership in rice production, strong export momentum and KRBL's well-diversified product and market base provide it with a solid foundation for growth.

Conclusion

Investing in rice stocks requires careful consideration.

Such stocks may be oversold following today's drop.

However, caution is advised, even though some stocks may have value the tariff headwind remains. Investors also need to do a thorough-research of their own before investing.

Investors should evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...