Agri stocks surge out of gate post FM balm

NEW DELHI: Shares of agri-linked sectors such as farm equipment, two-wheeler, agri-chemicals and fertiliser came alive on Thursday after Finance Minister Arun Jaitley unveiled a raft of schemes to mitigate rural distress.

Yogesh Mehta of Motilal Oswal Financial Services said the hike in minimum support price (MSP) to a minimum of 1.5 times of the cost is likely to push up agri-chemical stocks.

"Agriculture is an enterprise and we want to help farmers to produce more and get higher prices for his produce," the FM said.


Agrochemical stocks such as NACL, PI Industries, Sharda Corp and Monsanto India and UPL climbed up to 6.49 per cent. Rallis India too rose 1.86 per cent.

"Our government will develop and upgrade rural haats into gramin agriculture markets. Infrastructure will be provided through schemes like MNREGA," the FM said.

Agri market and infra fund of Rs 2,000 crore fund will be set up to strengthen the market connectivity. Besides, the FM proposed to extend Kisan credit card to fisheries and animal husbandry farmers. The finance minister allocated Rs 10,000 crore for fisheries and aquaculture and animal husbandry.

Fertiliser stocks such as Aries Agro, Nagarjuna Fertilizers, Rama Phosphates, GSFC and GNFC jumped up to 8 per cent.

Experts noted that the enhancement of rural livelihood through employment in rural infrastructure creation would be positive for agri-linked sectors.

Farm equipment and two-wheeler makers such as M&M, Eicher Motors and Hero MotoCorp added up to 2 per cent as the FM said the government is committed to welfare of farmers and will ensure necessary minimum support price (MSP) for their products.

The FM also proposed to double allocation for the food processing sector to Rs 1,400 crore from Rs 715 crore. State-of-the art facilities will be set up in 42 mega food parks, the FM said.