Agriculture Stocks Surge with New Schemes and Increased Credit

Agriculture stocks rose as Finance Minister Nirmala Sitharaman announced six new schemes and increased the Kisan Credit Card loan limit. Despite a lower Budget allocation for the agriculture ministry, enhanced funds for allied sectors helped counterbalance the reduction, focusing on agri-productivity and rural prosperity.

Agriculture-related stocks saw a notable rise on Saturday after Finance Minister Nirmala Sitharaman unveiled six new agricultural schemes. The Kisan Credit Card loan limit was increased to Rs 5 lakh, benefiting farmers, fishermen, and dairy farmers. Stocks like Kaveri Seed Co and Paradeep Phosphates experienced significant gains.

Despite a reduced Budget allocation for the agriculture ministry, totaling Rs 1.37 lakh crore for the next fiscal, allied sectors saw increased funding. Allocations for fisheries, animal husbandry, and dairying increased by 37% to Rs 7,544 crore, while food processing received a 56% boost to Rs 4,364 crore.

Presenting her eighth budget, Sitharaman described agriculture as "the first engine of growth." The Pradhan Mantri Dhan-Dhaanya Krishi Yojana aims to boost productivity in 100 low-productivity districts. The government also announced a pulses mission and various other initiatives to modernize and boost India's agriculture sector.

(With inputs from agencies.)