BENGALURU (Reuters) – India’s KRBL reported its fourth straight quarterly profit fall on Wednesday, hurt by slower demand for its basmati rice.

KRBL, which makes the ‘India Gate’ brand of basmati rice, said its consolidated net profit fell 55.5% to 865.6 million rupees ($10.4 million) in the quarter ended June.

Revenue from operations fell 15.2% to 11.99 billion rupees.

The world’s biggest rice exporter imposed various curbs on exports in July last year and continued them in 2024 in an effort to keep local prices in check ahead of the general elections held in April-May.

However, India plans to lower the floor price for basmati rice exports as rice inventories hit a record high, helping it retain market share in the face of Pakistan’s record exports, Reuters reported earlier this month. New Delhi is expected to lower the basmati rice’s minimum export price (MEP) to $800-$850 a metric ton, down from $950 a ton, to boost shipments, the report said.

Revenue from its agricultural business, which includes all rice types besides seed and bran, fell 16.1%.

KRBL’s shares ended up 1.1% ahead of the results, trimming their year-to-date losses to 15.1%.

($1 = 83.6700 Indian rupees)

Published Date: July 31, 2024