Union Finance Minister Nirmala Sitharaman in her Budget 2023 speech announced setting up an Agriculture Accelerator Fund to encourage agri-startups and increased the agriculture credit target to Rs 20 lakh crore.
Shares of Avanti Feeds surged as much as 7.99 percent to hit a high of Rs 416.50. The stock closed 0.29 percent higher at Rs 386. Avanti Feeds is also an integrated seafood company.
Shares of Waterbase rose by 13.70 percent to close at Rs 82.60. Waterbase is a leading manufacturer of shrimp feed in India.
Further, in a boost for the overall agriculture sector, the Finance Minister made big-ticket announcements for the animal husbandry, dairy, and fisheries segments.
"The agriculture credit target will be increased to Rs 20 lakh crore with a focus on animal husbandry, dairy, and fisheries," FM Sitharaman said. The agricultural credit target for the coming fiscal has increased fivefold over the target set in the fiscal year 2019.
The Finance Minister said the government will launch the 'Aatmanirbhar Clean Plant Program' aimed at increasing the availability of disease-free, quality planting material for high-value horticultural crops at an outlay of Rs 2,200 crore.
The Budget announcements for the agriculture sector could be rewarding to agri-companies and agri-tech startups, according to experts.
“Agriculture output growth will continue to remain the key enabling agriculture, agrochemicals, and fertilisers. Stocks such as Coromandel International, Paradeep Phosphates, etc. will remain in focus. Furthermore, Rs. 60,000 crore will be set aside for fisheries which may benefit companies like Avanti Feeds and Apex Frozen," said Urmi Shah, Research Analyst, SAMCO Securities on the stocks in the agricultural sector that are likely to see an upside.
