Driving agricultural progress and productiveness is a key focus for the federal government, finance minister Nirmala Sitharaman mentioned in her Finances speech. In line with her, the journey in direction of Viksit Bharat can be powered by 4 pillars: agriculture, MSMEs, funding, and exports.
The minister introduced a Nationwide Mission on Excessive Yielding Seeds to boost analysis, develop high-yield, pest-resistant, and climate-resilient seeds, and commercialize over 100 seed varieties launched since July 2024. Reacting to this, shares of Kaveri Seeds, Manglam Seeds and Nath Bio-Genes, rose 3-6%.
India is already the world’s second-largest in fish manufacturing and aquaculture, with seafood exports price ₹60,000 crore. To faucet the sector’s full potential, the federal government will introduce a framework for sustainable fisheries in its unique financial zone and excessive seas, specializing in the Andaman & Nicobar and Lakshadweep Islands. A customs responsibility exemption was granted for high-quality fertilizers and agricultural gear to help farmers.
Shares resembling BKV, Zeal Aqua, Varieties Infra Ventures, Apex Frozen Meals and Waterbase noticed beneficial properties of 1-6%. Equally, fertilizer shares, together with Indra Industries, Paradeep Phosphates and Gujarat State Fertilizers & Chemical compounds additionally rose by 2-5%.
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“This finances, not like earlier ones, takes a extra targeted strategy to the agrarian economic system by focusing on particular sub-segments,” mentioned Nirav Karkera, head of analysis at Fisdom. He pointed to measures for fruits, greens, and makhana, together with a robust push for urea, superior seeding amenities, and seed infrastructure growth. Enhancements to kisan bank cards is a step in the identical route. With that in thoughts, Karkera believes “we would see extra curiosity in agri-related corporations going forward”.
Sonam Srivastava, founder and fund supervisor at Wright Analysis PMS, mentioned that she has taken fairly a couple of bets within the agriculture house, although not all have seen an upward pattern simply but. She believes agriculture is slated to be the following massive funding theme over the following yr or two, and “We’d see extra agri-focused funds being launched in response to the continued reforms”.
Whereas the finer particulars are awaited, the federal government’s robust push for exports of agricultural merchandise is evident. “That is probably to usher in demand and bolster topline of a number of corporations,” she mentioned, stating that margin progress will rely upon a number of components.
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In partnership with states, the Centre will launch the Prime Minister Dhan-Dhaanya Krishi Yojana to spice up agriculture in 100 districts with low productiveness, average crop depth and below-average credit score parameters. The initiative goals to boost yields, promote crop diversification, enhance irrigation, broaden post-harvest storage, and guarantee higher credit score entry. Consequently, shares of irrigation corporations like Kirloskar Brothers, KSB, and Rungta Irrigation rose by 3-5%.
Rural focus
By the multi-sectoral ‘Rural Prosperity and Resilience’ programme, which may even be launched in partnership with states, the federal government goals to deal with underemployment in agriculture by means of skilling, funding and know-how. “The aim is to generate ample alternatives in rural areas in order that migration is an choice, however not a necessity,” Sitharaman mentioned.
She said that the federal government is implementing the Nationwide Mission for Edible Oilseeds to realize Aatmanir Bharta in edible oils. Constructing on this, a six-year ‘Mission for Aatmanir Bharta in Pulses’ can be launched, specializing in tur, urad, and masoor. To help farmers, central businesses like NAFED and NCCF will procure these pulses over the following 4 years from registered farmers who enter into agreements.
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In the meantime, “The brand new five-year Cotton Expertise Mission Scheme, targeted on bettering cotton farming and selling extra-long staple varieties, is more likely to help a rise in cotton acreage and output,” mentioned Srikumar Krishnamurthy, senior vice-president & co-group head, ICRA. He added that the sharp enhance in budgetary allocation for the textiles ministry in 2025-26 is anticipated to help the business throughout worth chains, with a rise in allocations for the Amended Expertise Upgradation Scheme and Manufacturing Linked Incentive schemes.
T. Manish, a analysis analyst at Samco Securities mentioned the cotton mission goals to boost the standard of extra-long staple cotton varieties, fostering improved yields and sectoral progress. “Regardless of stagnant to declining cotton seed costs, this initiative has the potential to strengthen the business’s outlook and profit corporations like Ambika Cotton,” he mentioned. Shares of Ambika Cotton ended 3% decrease.
One other measure was extra Kisan Credit score Playing cards to facilitate quick time period loans for 77 million farmers, fishermen, and dairy farmers. The KCC mortgage restrict can be enhanced to ₹5 lakh from ₹3 lakh, for loans beneath the Modified Curiosity Subvention Scheme.
