Shares of agriculture-related stocks surged up to 10 per cent today after Finance Minister Arun Jaitley said that Budget 2018-19 will focus on strengthening agricultural and rural economy.
NACL Industries stock zoomed 9.64 per cent, PI Industries 6.49 per cent, Shakti Pumps India 5.89 per cent, Action Construction Equipment 5.66 per cent and Monsanto India 4.84 per cent on the BSE.
Among others, shares of Aries Agro gained 4.99 per cent, Dhanuka Agritech 3.89 per cent, Kaveri Seed Company 3.4 per cent and UPL 2.61 per cent.
In a major bonanza to farmers, Finance Minister Arun Jaitley today announced fixing the support price for kharif crops, like paddy, by at least 50 per cent higher than the cost of production, while raising farm credit target for the next fiscal by 10 per cent to Rs 11 lakh crore.
Presenting the Union Budget 2018-19, Jaitley reiterated the government’s commitment for the welfare of farmers stating that the emphasis is to generate higher income for farmers.
Prime Minister Narendra Modi has given a clarion call to double the farmers’ income by 2022, he added.
Jaitley said the government has decided to fix the minimum support price (MSP) of coming Kharif (summer sown) crops, which include maize, soyabean and pulses, at least one-and-half times the cost of production.
He said the MSPs of most of rabi (winter sown) crops have already been raised.