LT Foods, KRBL, Kohinoor Foods rally on high rice prices

MUMBAI: Shares of companies which sell rice as a finished product soared in trade on reports that a decline in paddy production in eastern states and Andhra Pradesh has triggered rise in price of the food commodity.

According to ET report, the speculation of a lower rice output this year has resulted in 10-30 per cent spike in prices at a time when high vegetable prices have pushed inflation to a seven-month high.

Analysts are of the view that the companies that sell rice are likely to benefit due to huge mark-to-market gains on inventories.

Floods and incessant rains in major rice producing states such as West Bengal, Odisha, Bihar and Andhra Pradesh during the harvesting period have affected the paddy crop, the ET report said.

Talking to ET, Trilochan Mohapatra, director, Central Rice Research Institute (CRRI), said, "Floods in Odisha, Bihar and continuous rains in West Bengal during the harvesting time have affected the paddy crop.

At 10:10 a.m.; LT Foods surged 4.93 pe rcent, KRBL rallied 5.74 per cent, Kohinoor Foods moved 7.85 per cent higher and Rei Agro was up 1.09 per cent