Yields from agricultural activities, which include all types of rice except seeds and bran, fell by 16.1 percent | Image: Wikimedia Commons
Indian company KRBL on Wednesday reported its fourth straight quarterly profit decline, due to lower demand for basmati rice.
KRBL, which makes basmati rice under the ‘India Gate’ brand, reported that its consolidated net profit fell 55.5 percent to Rs 8,656 lakh ($10.4 million) in the quarter ended June.
Operating revenue declined 15.2 percent to Rs 1,199 cr.
The world’s largest rice exporter imposed several export restrictions in July last year and continued them into 2024 in a bid to keep a lid on local prices ahead of general elections in April-May.
However, India is set to cut the minimum export price for basmati rice as rice stocks hit a record high, helping it retain market share amid record exports from Pakistan, Reuters reported earlier this month. New Delhi is expected to cut the minimum export price (MEP) for basmati rice to $800-$850 per tonne from $950 per tonne, to boost shipments, the report said.
Revenue from agricultural activities, which includes all types of rice except seeds and bran, fell by 16.1 percent.
KRBL shares rose 1.1 percent on the results, narrowing its year-to-date loss to 15.1 percent.
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First print: Jul 31, 2024 | 7:49 PM IST