Following the announcement of the Union Budget 2024, which included important measures to improve agricultural productivity and support the production of oilseeds and pulses, agricultural stocks experienced a noteworthy increase of up to 11 percent. A rise in the shares of agri-related companies, including Kaveri Seeds and Jain Irrigation Systems Mangalam Seeds JK Agri Genetics, Nath Bio-Genes, Dhanuka Agritech, and ShreeOswal Seeds observed gains ranging from 2 to 11 percent following the announcement by Finance Minister Nirmala Sitharaman of ₹1. 52 lakh crore for agriculture and allied sectors.
The increase in stock prices is a reflection of the government's desire to help farmers and raise their standard of living. In addition to declaring that this year's budget would prioritize the introduction of 109 new crop varieties that are both climate-resistant and high-yielding, Sitharaman underlined the significance of increasing productivity and resilience in agriculture.
Research Analyst T. Manish from SAMCO Securities highlighted companies like Kaveri Seeds and Dhanuka Agritech as the primary beneficiaries of these measures. The importance of agricultural research in fostering climate resilience and boosting the output of oilseeds and pulses was also emphasized by the Financial Minister.
Sitharaman also revealed plans to carry out the Atmanirbhar Oilseeds Abhiyaan, which aims to make oilseeds like soybean, groundnut, sunflower, sesame, and mustard self-sufficient. Over the next three years, the government will cover farmers and lands by making use of digital infrastructure to support farmer-producer organizations, cooperatives, and startups.
The budget addresses climate change-related inflation and includes additional incentives to support important crops and lower food inflation. Nevertheless, despite these efforts, the agrochemical sector's finances are under strain due to unfavorable weather patterns and the effects of climate change. Government support is necessary to boost rural consumption and revive the economy in these hard times.