Stocks of select food-related companies such as LT Foods, Kohinoor Foods and KRBL have moved up in the range of 6 – 8% after the government allowed export of 2 million tonnes of non-basmati rice.
“The empowered group of ministers (eGoM), which met on Thursday, has decided to put a ban on onion exports till further notice but allowed exports of 2 million tonnes of wheat and 2 million tonnes of non-basmati rice," reports suggest.
Exports of onions were banned as a precautionary measure ahead of major festivals as retail prices has jumped by more than 100% in the last two months. The government is planning to purchase a record 35.3 million tonnes of rice from farmers in the next season starting October — up by 8% purchased this year, reports indicate.
Among individual stocks, Kohinoor Foods has moved up over 8%, followed by KRBL (up 6.7%) and LT Foods (6.3%).