Rice stocks tank! Trump issues new tariff threat to India over rice dumping; Kohinoor sheds 10%

Indian rice exporters are having a hard day at Dalal Street on Tuesday after US President Donald Trump hinted at a possibility of another round of tariffs on Indian rice imports. The announcement triggered an immediate rout on the markets, raising concerns among investors.Kohinoor Foods saw the sharpest fall, sliding 9.9% to Rs 24.41, its intraday and 52-week low on the BSE. After the dip, the stock rose, to Rs 27.81, adding over 2.5%.LT Foods also fell heavily, dropping 6.5% to Rs 368, while KRBL retreated 2.7% to Rs 370.05. Later in the day, KRBL managed to come back in green figures, adding over 1.5% while LT Foods around also recovered, trading at Rs 376 at BSE, around 11:40 AM. Chaman Lal Setia Exports, another major player in the space, slipped 4.5% to Rs 243.05. However, it trimmed its losses to 0.29 loss, later.The sell-off was sparked by remarks Trump made during an event at the White House where additional assistance for American farmers was announced. The US President said that he intended to “take care” of what he described as the “dumping” of Indian rice in the US market, claiming that lower-priced imports from India, Vietnam and Thailand were damaging the competitiveness of domestic growers. “They shouldn’t be dumping,” Trump said. “You can’t do that,” he further added, as cited by Bloomberg.The suggestion of fresh tariff action comes at a time when the US administration is under pressure from the country’s farming community, a politically influential group ahead of the midterm elections. Farmers have been dealing with rising input costs and uncertain crop prices, some of which have been linked to earlier tariff decisions, ET reported.Trump also hinted that rice may not be the only commodity facing scrutiny, signalling that Canadian fertiliser imports could also be subjected to higher duties. Canada supplies a large share of potash to the US, and although certain imports fall under the North American trade agreement, new tariffs would raise production costs for US farmers. Potash and phosphate were recently added to the US critical minerals list, fuelling expectations of a push for greater domestic output.Washington had already imposed a 50% tariff on Indian goods, back in August. This consisted to the already levied 25% tariff and the additional 25% duties that US alleged was a due to India’s continued purchase of Russian oil that fueled Moscow’s war machine against Ukraine. A US delegation is due in India this week, but the likelihood of securing a rollback on tariffs is seen as low, ET reported.Canada, another US trade partner, has also been navigating uncertainty. Earlier proposals from Trump suggested duties on Canadian goods outside the USMCA framework could rise by up to 10%, potentially taking them to 45%.With policy signals from Washington once again clouding the outlook for agricultural trade, investors will be keeping a firm eye on rice-exporting stocks. Any further movement in US tariff policy, especially in sectors tied to farming communities, is expected to play a decisive role in market direction in the coming days.(Disclaimer: Recommendations and views on the stock market, other asset classes or personal finance management tips given by experts are their own. These opinions do not represent the views of The Times of India)