Soft Commodity Rally Lifts Rice and Dairy Stocks

Shares of rice and dairy companies surged on August 24, extending the recent rally in soft commodity stocks after earlier gains in the sugar sector. Rice processors and exporters led the charge, with LT Foods climbing as much as 13-14% to hit a 52-week high near ₹489, while KRBL and Chaman Lal Setia rose around 8-9%. Trading volumes in

ds soared to extraordinary levels, several times the recent average. The move was driven by firming rice prices in physical markets. Higher demand combined with a relatively constrained crop size pushed mandi prices higher, lifting sentiment for processors and exporters. KRBL management noted that prices could stay firm for the rest of the year, though profitability will also depend on export revival and paddy costs. The company expects a normal basmati crop this season with sowing levels broadly in line with previous years. Dairy stocks participated more moderately. Recently listed Milky Mist Dairy Food gained about 3.5%, while Parag Milk Foods and Hatsun Agro rose up to 6%. These companies focus largely on value-added products such as cheese, paneer, curd and ice cream rather than liquid milk.