The agriculture stocks climbed around 6 to 9 per cent in the Tuesday trading session during the Union Budget speech by finance minister Nirmala Sitharam as the government allocated Rs 1.52 crore to agriculture and allied sectors along with other incentives.
The stocks of Dhanuka Agritech soared as much as 8 per cent, while Mangalam Seeds also touched 8 per cent height. Kaveri Seeds surged over per cent to Rs 1,054 and JK Agri Genetics rose around 5 per cent, at the time of filing this report.
The Union budget also incentivised natural farming as it declared to initiate 1 crore farmers into natural farming over the next few years.
The government also planned to strengthen production, storage, and marketing for self-reliance in pulses and oilseeds.
“The budget focuses on important areas such as climate resistant seed variety distribution, scaling digital public infrastructure and natural farming which will improve farm level productivity. Mission for self-sufficiency in pulses, encouraging shrimp production and focus on vegetable production clusters will help in aligning production to emerging changes in consumption of fresh produce and proteins,” said Anand Ramanathan, Partner and Consumer Products, Retail sector Leader, Deloitte India.
Sitharaman reiterated that the government announced higher Minimum Support Prices (MSP) for all major crops, delivering on the promise of at least a 50 per cent margin over cost.
“The FM declared nine priorities starting with agriculture. The government did not see much support from farmers during the elections and this looks like a measure to mobilise them. MSP for all major crops has been increased. It’s very much to the benefit of farmers as a promise of a 50 per cent margin over the cost of production has been made for MSP,” said Divam Sharma, Founder and Fund Manager, Green Portfolio.
One thing which particularly appreciated is the support being lent for shrimp production, and financing via NABARD. The centre is moving more and more towards technology so improving digital public infrastructure for agriculture only makes sense, added Sharma.
The Union budget also extended the PM Garib Kalyan Anna Yojana for five years, benefitting more than 80 crore people.
Reference Link: https://businessworld.in/article/agriculture-stocks-flourish-as-govt-allocates-rs-152-lakh-cr-for-agri-and-allied-sectors-526944