The Union Budget 2025 brought a question of optimism for agriculture and fertilizer stocks, arsenic Finance Minister Nirmala Sitharaman announced large initiatives for the sector. Following the announcement, respective agri-related stocks surged, with Agri Tech India witnessing an 11% jump, Kaveri Seeds rising by 9 per cent, Bombay Super Hybrid Seeds up by 8 per cent, and RCF gaining 5 per cent.
Key fund highlights for agriculture
- The Pradhan Mantri Dhan Dhanya Krishi Yojana was announced, aiming to amended cultivation productivity successful collaboration with authorities governments.
- 1.7 crore farmers volition payment from this initiative, focusing connected boosting workplace output and income.
- A five-year peculiar ngo for cotton productivity enhancement was introduced to enactment the textile industry.
- The Kisan Credit Card limit volition beryllium raised to Rs 5 lakh, offering greater fiscal enactment to farmers.
- A caller argumentation for self-sufficiency successful pulses was unveiled to trim import dependence and heighten home production.
Stock marketplace reaction
The announcements led to a surge successful agriculture and fertilizer stocks, driven by capitalist assurance successful the sector’s aboriginal growth. Companies successful hybrid seeds, fertilizers, and agri-tech witnessed beardown buying interest.
Top gainers:
- Agri Tech India: +11 per cent
- Kaveri Seeds: +9 per cent
- Bombay Super Hybrid Seeds: +8 per cent
- RCF: +5 per cent
Stocks similar FACT, Chambal Fertilisers, and National Fertilizers Limited (NFL) besides saw an uptick successful their prices.
Outlook for the agriculture sector
With an accrued absorption connected workplace productivity, agrarian development, and recognition accessibility, the agriculture assemblage is poised for semipermanent growth. The marketplace volition intimately ticker the implementation of these schemes and their interaction connected cultivation output and firm net successful the coming quarters.
As authorities policies proceed to favour agri-businesses, capitalist sentiment remains bullish, making agriculture stocks an charismatic stake for the adjacent term.