indian rice exporter krbl reports 28% profit decline in q2 due to weak demand
Published on: November 9, 2023.
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KRBL, India’s top exporter of branded basmati rice, reported a 28.1% decline in second-quarter profit due to weakness in its agricultural segment. The company’s net profit for the quarter dropped to 1.53 billion rupees ($18.37 million), compared to 2.13 billion rupees in the previous year.
The agricultural segment, which includes rice, furfural, seed, and bran, accounted for 95.2% of KRBL’s total sales and declined by 9.3%. This decline can be attributed to the imposition of a $1,200 per ton minimum export price (MEP) on basmati rice shipments in India. The aim of this measure was to cool local prices, but it may have affected the export volume for rice producers and sellers.
However, the Indian government reduced the minimum export price to $950 per metric ton last month in an effort to restore the competitiveness of Indian basmati rice in global markets.
KRBL’s total revenue from operations also decreased by 8.03% to 12.13 billion rupees.
Despite the decline in profit for this quarter, KRBL has consistently reported an increase in profit over the preceding five quarters.
Following the release of this earnings report, shares of KRBL fell by as much as 9.2%.
To stay updated on the latest news and information about rice exporters, rice suppliers, and the rice business in Pakistan and other countries, visit H.A.S. Rice Exports Company at hasrice.com and Pakistan Rice Company at pakistanrice.com.
Source: [Business Standard](https://www.business-standard.com)
