Driving agricultural development and productiveness is a key focus for the federal government, finance minister Nirmala Sitharaman stated in her Finances speech. In response to her, the journey in the direction of Viksit Bharat might be powered by 4 pillars: agriculture, MSMEs, funding, and exports.
The minister introduced a Nationwide Mission on Excessive Yielding Seeds to boost analysis, develop high-yield, pest-resistant, and climate-resilient seeds, and commercialize over 100 seed varieties launched since July 2024. Reacting to this, shares of Kaveri Seeds, Manglam Seeds and Nath Bio-Genes, rose 3-6%.
India is already the world’s second-largest in fish manufacturing and aquaculture, with seafood exports value ₹60,000 crore. To faucet the sector’s full potential, the federal government will introduce a framework for sustainable fisheries in its unique financial zone and excessive seas, specializing in the Andaman & Nicobar and Lakshadweep Islands. A customs obligation exemption was granted for high-quality fertilizers and agricultural tools to help farmers.
Shares comparable to BKV, Zeal Aqua, Sorts Infra Ventures, Apex Frozen Meals and Waterbase noticed beneficial properties of 1-6%. Equally, fertilizer shares, together with Indra Industries, Paradeep Phosphates and Gujarat State Fertilizers & Chemical substances additionally rose by 2-5%.
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“This price range, in contrast to earlier ones, takes a extra targeted strategy to the agrarian economic system by concentrating on particular sub-segments,” stated Nirav Karkera, head of analysis at Fisdom. He pointed to measures for fruits, greens, and makhana, together with a powerful push for urea, superior seeding services, and seed infrastructure improvement. Enhancements to kisan bank cards is a step in the identical course. With that in thoughts, Karkera believes “we would see extra curiosity in agri-related firms going forward”.
Sonam Srivastava, founder and fund supervisor at Wright Analysis PMS, stated that she has taken fairly just a few bets within the agriculture house, although not all have seen an upward pattern simply but. She believes agriculture is slated to be the subsequent large funding theme over the subsequent yr or two, and “We’d see extra agri-focused funds being launched in response to the continued reforms”.
Whereas the finer particulars are awaited, the federal government’s sturdy push for exports of agricultural merchandise is evident. “That is seemingly to herald demand and bolster topline of a number of firms,” she stated, declaring that margin development will depend upon a number of components.
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In partnership with states, the Centre will launch the Prime Minister Dhan-Dhaanya Krishi Yojana to spice up agriculture in 100 districts with low productiveness, average crop depth and below-average credit score parameters. The initiative goals to boost yields, promote crop diversification, enhance irrigation, broaden post-harvest storage, and guarantee higher credit score entry. Consequently, shares of irrigation firms like Kirloskar Brothers, KSB, and Rungta Irrigation rose by 3-5%.
Rural focus
Via the multi-sectoral ‘Rural Prosperity and Resilience’ programme, which may even be launched in partnership with states, the federal government goals to handle underemployment in agriculture by skilling, funding and know-how. “The objective is to generate ample alternatives in rural areas in order that migration is an choice, however not a necessity,” Sitharaman stated.
She said that the federal government is implementing the Nationwide Mission for Edible Oilseeds to realize Aatmanir Bharta in edible oils. Constructing on this, a six-year ‘Mission for Aatmanir Bharta in Pulses’ might be launched, specializing in tur, urad, and masoor. To help farmers, central companies like NAFED and NCCF will procure these pulses over the subsequent 4 years from registered farmers who enter into agreements.
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In the meantime, “The brand new five-year Cotton Know-how Mission Scheme, targeted on enhancing cotton farming and selling extra-long staple varieties, is more likely to help a rise in cotton acreage and output,” stated Srikumar Krishnamurthy, senior vice-president & co-group head, ICRA. He added that the sharp enhance in budgetary allocation for the textiles ministry in 2025-26 is anticipated to help the trade throughout worth chains, with a rise in allocations for the Amended Know-how Upgradation Scheme and Manufacturing Linked Incentive schemes.
T. Manish, a analysis analyst at Samco Securities stated the cotton mission goals to boost the standard of extra-long staple cotton varieties, fostering improved yields and sectoral development. “Regardless of stagnant to declining cotton seed costs, this initiative has the potential to strengthen the trade’s outlook and profit firms like Ambika Cotton,” he stated. Shares of Ambika Cotton ended 3% decrease.
One other measure was extra Kisan Credit score Playing cards to facilitate quick time period loans for 77 million farmers, fishermen, and dairy farmers. The KCC mortgage restrict might be enhanced to ₹5 lakh from ₹3 lakh, for loans below the Modified Curiosity Subvention Scheme.
