Finance Minister Nirmala Sitharaman is currently presenting Union Budget 2020-21 in the Parliament. While reading out the Budget, the FM spoke broadly on the first theme of the document — Aspirational India. Under that, Sitharaman announced that the government is committed to doubling farmers’ income by 2022.
Soon after the announcement on the agriculture space, fertilizer and irrigation stocks began to edge higher.
Shares of Godrej Agrovet, Deepak Fertilizers, Balaji Amines, Jayant Agro and Hikal were trading higher by 4.07 percent, 1.44 percent, 6.33 percent, 4 percent, and 1.41 percent, respectively, at around 11:45 am.
Jain Irrigation and VA Tech Wabag's shares surged 4.90 percent and 6.30 percent, respectively. Shares of Shakthi Pumps Were trading 11.91 percent higher at Rs 273 per share.
"The agriculture credit availability target is set at Rs 15 lakh crore. The focus will be to change the prevailing incentive scheme that encourages the use of chemical fertilizers,” said the FM. She listed 16 action points for farmers' welfare.
In her budget speech, Sitharaman also proposed comprehensive measures for 100 water-stressed districts.
The government also insured over 6 crore farmers under Pradhan Mantri Fasal Bima Yojana. "Agriculture market needs to be liberalised, NABARD will undertake an exercise, to develop warehouses. The government will support establishing warehouses at Block and Tehsil levels," added FM.
Along with chemical and fertilizer stocks, share prices of M&M and Escorts also rose amid expectations of increased tractor sales coming from rising agricultural activity.
The stock prices of Escorts and M&M traded 1.04 percent and 1.12 percent higher.
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