LT Foods, KRBL shares fall after Trump threatens 25% tariff on countries trading with Iran

Shares of listed basmati rice exporters such as LT Foods and KRBL opened up to 2% lower on Tuesday, January 13, after the US announced a 25% tariff on countries doing business with Iran.

The US is a small but valuable market for Indian rice. India exported roughly 234,000 tonnes of rice to the US in FY24, accounting for less than 5% of its global basmati exports.

Rice traders have commented on earlier US tariffs

, citing that the tariff hike is not a major concern. The US remains the least price-elastic market and, being a small market for India, it is relatively easy for exporters to diversify.

India's rice trade with Iran

Iran is one of the top destinations for Indian basmati rice. In FY25, India exported around 8.5 lakh tonnes of basmati rice to Iran, making it a major buyer after Saudi Arabia and Iraq. Iran accounted for roughly 12-20% of India's total basmati rice exports.

For context, India's total rice exports in FY25 stood at 21.55 million metric tonnes, up 19.4% YoY.

On Monday, shares of LT Foods fell 3%, while Chaman Lal Setia Exports declined by a similar margin. KRBL was also trading around 2% lower.

LT Foods has previously highlighted that India is the world's largest rice exporter, with rising global demand for basmati and speciality rice providing huge scope for growth.

In regions such as North America, Europe and the Gulf, demand is being driven not only by mainstream consumers but also by diverse ethnic communities.

The company said that growing preference for aromatic and convenient food products, including pre-cooked rice and Daawat biryani kits, is creating strong tailwinds for international expansion among branded rice players.

KRBL reported export revenue of ₹1,473 crore in FY25. The Middle East remains a critical market for the company, accounting for 74% of India's basmati rice exports. KRBL derives around 61% of its basmati export revenue from the region, with key markets including Saudi Arabia, the UAE, Kuwait and Qatar.

US President Donald Trump on Monday said the US had imposed a 25% tariff on goods from countries with commercial ties to Iran, a move aimed at increasing pressure on Tehran amid ongoing anti government protests.

In a post on social media platform Truth Social, Trump said the tariff was effective immediately, though he did not specify what constitutes "doing business" with Iran.

China is Iran's largest trading partner, followed by Iraq, the United Arab Emirates, Turkey and India.

Trump said any country doing business with the Islamic Republic of Iran would face a 25% tariff on all trade conducted with the United States, adding that the order was final.

The White House has not yet provided further details on the scope of the tariffs or clarified which countries or sectors could be most affected.