Why 'India Gate, Daawat' rice stocks are down today? LT Foods, KRBL fell up to 10%  - Reasons

Shares of basmati rice producers LT Foods, KRBL Ltd, GRM Overseas and Chamanlal Setia Exports tanked up to 10% on Monday amid reports of escalation of war between US and Iran. Iran is one of the major importers of basmati rice from India. 

Shares of LT Foods tanked 10.15% to Rs 361.45 against the previous close of Rs 402.30 on BSE. Market cap of the firm slipped to Rs 13,188 crore. Daawat, the basmati rice brand is owned by LT Foods. 
 
KRBL shares fell 4.56% to Rs 323.95 against the previous close of Rs 339.45. Market cap of the firm slipped to Rs 7,477 crore. KRBL is the owner of the famous India Gate basmati rice. 

GRM overseas shares too slipped 3.71% to Rs 155.65 against the previous close of Rs 161.65. Market cap of the firm fell to Rs 2920 crore. 

Shares of Chamanlal Setia Exports, another Basmati rice producer slipped 5.47% to a low of Rs 254.80. Market cap of the rice firm fell to Rs 1292 crore. 

The closure of Hormuz Strait by Iran has led to large consignments stuck at ports. 

According to reports, around 1.5-2 lakh tonne of Basmati rice is stuck at various ports across India with around 2 lakh tonne in transit after the closure of Hormuz Strait.