Iran Crisis Hits Basmati Rice Stocks: Exports Stalled, Shares Plummet

• Basmati rice stocks like GRM Overseas, Sarveshwar Foods, and Kohinoor Foods saw a sharp sell-off on Monday, January 12.
• Kohinoor Foods was the biggest loser, dropping 3.37% to 24.91 rupees, while Sarveshwar Foods and GRM Overseas fell over 2%.
• The primary reason for the decline is increased uncertainty regarding Basmati rice exports to Iran due to the Iran-Israel conflict.
• Approximately 2000 crore rupees worth of Basmati rice is stuck at international ports, impacting farmers and processors in Punjab and Haryana.
• The Iranian Rial has significantly depreciated against the dollar, and a previous subsidy for food imports has been discontinued, further complicating exports.

Why It Matters: Iran crisis and currency depreciation severely impact Basmati rice exports, causing a sharp decline in related stock prices.