Driving agricultural development and productiveness is a key focus for the federal government, finance minister Nirmala Sitharaman mentioned in her Funds speech. In line with her, the journey in direction of Viksit Bharat shall 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 obligation exemption was granted for high-quality fertilizers and agricultural tools to help farmers.
Shares similar to BKV, Zeal Aqua, Sorts Infra Ventures, Apex Frozen Meals and Waterbase noticed positive aspects 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 price range, not like earlier ones, takes a extra centered method to the agrarian financial 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 powerful push for urea, superior seeding amenities, and seed infrastructure improvement. 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 firms going forward”.
Sonam Srivastava, founder and fund supervisor at Wright Analysis PMS, mentioned that she has taken fairly a number of bets within the agriculture area, although not all have seen an upward development simply but. She believes agriculture is slated to be the following large funding theme over the following 12 months or two, and “We’d see extra agri-focused funds being launched in response to the continuing reforms”.
Whereas the finer particulars are awaited, the federal government’s robust push for exports of agricultural merchandise is obvious. “That is probably to herald demand and bolster topline of a number of firms,” she mentioned, declaring that margin development will rely upon a number of elements.
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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, reasonable crop depth and below-average credit score parameters. The initiative goals to boost yields, promote crop diversification, enhance irrigation, increase post-harvest storage, and guarantee higher credit score entry. Consequently, shares of irrigation firms like Kirloskar Brothers, KSB, and Rungta Irrigation rose by 3-5%.
Rural focus
Via the multi-sectoral ‘Rural Prosperity and Resilience’ programme, which can even be launched in partnership with states, the federal government goals to handle underemployment in agriculture by way of skilling, funding and know-how. “The purpose is to generate ample alternatives in rural areas in order that migration is an possibility, however not a necessity,” Sitharaman mentioned.
She said that the federal government is implementing the Nationwide Mission for Edible Oilseeds to attain Aatmanir Bharta in edible oils. Constructing on this, a six-year ‘Mission for Aatmanir Bharta in Pulses’ shall 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, centered on bettering cotton farming and selling extra-long staple varieties, is more likely to assist 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 development. “Regardless of stagnant to declining cotton seed costs, this initiative has the potential to strengthen the business’s outlook and profit firms like Ambika Cotton,” he mentioned. Shares of Ambika Cotton ended 3% decrease.
One other measure was extra Kisan Credit score Playing cards to facilitate brief time period loans for 77 million farmers, fishermen, and dairy farmers. The KCC mortgage restrict shall be enhanced to ₹5 lakh from ₹3 lakh, for loans underneath the Modified Curiosity Subvention Scheme.
