In the Budget speech, Sitharaman said the government in partnership with states will promote digital public infra for agriculture.
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While Kaveri Seeds is trading 9% higher, Dhanuka is up about 6%. Meanwhile, Coromandal Chemicals and Bio Fertilizers is trading 0.34% lower from previous close. Nova Agritech, on the other hand, rose nearly 4%.
Sitharaman said the farmer and land registry will have details of 6 crore farmers and the government will also ensure Kisan credit cards in five states.Finance Minister Nirmala Sitharaman has also announced Research based setups for raising productivity and Developing climate resistant crops by providing new 109 climate resistant crops in 32 categories to be developed and released. Companies like Kaveri Seeds, Dhanuka Agritech would be the beneficiaries, said T Manish, Research Analyst, SAMCO SecuritiesIn addition to the interim budgets’ announcements about the Atmanirbhar Oilseeds Abhiyaan, a strategy will also be formulated to achieve atmanirbharta for oilseeds such as mustard, sesame, sunflower, groundnut and soybean.
The agriculture and allied sectors are estimated at Rs 56.19 lakh crore at current prices in FY23, according to SBI research. The credit to agri and allied activities increased 3.5x by March 2024, hitting Rs 20.7 lakh crore, against Rs 6 lakh crore in FY14, standing at 37% of the output in the sector.
Analysts had already estimated agriculture incentives in the Budget, given the recent election results and the continued demand for job creations.
Brokerage Prabhudas believes normal monsoon and incentives to rural population and agriculture will further accelerate rural growth rates in consumption sectors in coming quarters.
The focus has now shifted more to the non-urban areas to prop up incomes/demand.
“This does not imply that the government has to move away from its supply-side focus. In our view, allocations to PM-KISAN, rural housing, rural roads and rural employment will provide welfare support and infrastructure improvements,” said Kotak Equities.
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