Why are KRBL, LT Foods, AWL Agri Business and other rice stocks falling today?

Rice Stocks Today: Shares of major listed rice companies came under pressure in early trading on Tuesday after US President Donald Trump said India should not be “dumping” rice into the American market and indicated that tariffs could be used to address the issue.

The comments, made during a roundtable with US farming and agriculture representatives at the White House, triggered caution among investors tracking India’s rice export sector.

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In morning trade, KRBL Ltd slipped to Rs 376.85, down 0.96 per cent. LT Foods Ltd was among the biggest losers, falling 6.72 per cent to Rs 367.05. GRM Overseas Ltd dropped 3.10 per cent to Rs 449.80, while Chaman Lal Setia Exports Ltd dipped 1.85 per cent to Rs 249.75. Kohinoor Foods Ltd fell 0.66 per cent to Rs 26.93, and AWL Agri Business Ltd declined 1.95 per cent to Rs 246.10.

What Donald Trump Said?

The weakness came after Trump responded strongly to concerns raised by Meryl Kennedy, CEO of Kennedy Rice Mill in Louisiana, who told him that American rice producers are “struggling” as other countries are “dumping” rice into the US market. When asked who the major contributors were, Kennedy named India, Thailand, and China (into Puerto Rico).

Trump questioned why India was allowed to export rice in this manner and said the issue could be resolved quickly through tariffs.

“They shouldn’t be dumping… They can’t do that,” he said. Trump added that tariffs would solve the matter “in one day” and instructed Treasury Secretary Scott Bessent to take note of the countries allegedly involved.

The US administration has also been informed of an ongoing World Trade Organisation (WTO) case involving India’s rice exports. Kennedy told Trump that while the situation has been evolving for years, the scale of dumping appears to have increased recently.

She added that American farmers need “fair trade, not free trade” to stay competitive.

Trump, who has already announced USD 12 billion in federal aid for US farmers, reiterated that tariffs would provide quick relief and argued that lower court rulings restricting his emergency tariff powers were unfair. The matter is now headed to the US Supreme Court.