Agri Business

Groundwork for growth

Nalinakanthi V | Updated on: Feb 01, 2017

The Change

There are many goodies for the farming community. An 11 per cent increase in agri credit — ₹10 lakh crore in 2017-18, ₹452 crore towards the National Project on Soil Health and Fertility for 2017-18, and setting up of a Micro Irrigation Fund will not only help farmers but also companies in the agri-input and irrigation space.

The Background

About two-third’s of the country’s population is dependent directly or indirectly on agriculture, which contributes about a sixth to the economy. With just 46 per cent of the total sown area under irrigation, the country’s agricultural prospects are directly linked to monsoon rainfall. This is not just a threat to the country’s food security, but also affects allied sectors. Investment in irrigation, research and technology is needed to make it resilient.

The Verdict

Higher credit for agriculture will ensure availability of funds to buy agri-inputs – fertilisers, seeds and pesticides. Setting up of soil testing labs will promote balanced fertilisation and augur well for Coromandel Fertilisers, GSFC and Aries Agro, which sell phosphatic fertilisers and micro-nutrients.

Investment in micro irrigation is positive for irrigation equipment makers such as Jain Irrigation and also other specialty nutrient and water soluble fertiliser makers such as Coromandel International, GSFC and Rallis India.

Published on January 12, 2018

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