Agri stocks soar up to 9% as Budget 2025 unveils reforms to support agriculture, farmers

The agriculture and allied activities department received an allocation of Rs 1.71 lakh crore for FY 26

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26 Aug, 2025 12:21

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Agri stocks jumped up to 9 percent after the Finance Minister unveiled measures in the Union Budget 2025 aimed at boosting crop diversification, irrigation facilities, credit availability for farmers. Additionally, Sitharaman announced a mission to achieve self reliance in pulses in the next six years, with a special focus on  tur, urad, and masur.

"The government will undertake Dhan Dhanya Yojana in partnership with state, to enhance productivity, crop diversification, augment post harvest storage, improve irrigation, facilitate short and long term credit to help 1.7 crore farmers," Sitharaman said.

Moreover, the finance also announced the creation of makhana board in Bihar to boost production and marketing of the crop. For cotton growing farmers, a 5-year mission will be launched to promote production. In addition, the government also increased the loan limit for Kisan credit cards to Rs 5 lakh to extend support to farmers.

"The significant thrust on agriculture will not only enhance agricultural productivity but also boost rural consumption," said George Alexander Muthoot, MD, Muthoot Finance.

Industry experts also commended the finance minister's support towards the industry. "This budget is a significant step towards a stronger, 'Make in India' agriculture sector boost spirit of farmers," said Dr R.G Agarwal, Chairman Emeritus, Dhanuka Agritech.

Following the announcement, shares agri-related companies- Kaveri Seeds, Jain Irrigation Systems, Mangalam Seeds, JK Agri Genetics, Nath Bio-Genes, Dhanuka Agritech, ShreeOswal Seeds soared 2-9 percent.

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The reaction was driven by the government fulfilling the industry's expectations of a continued support to lift farmer income and  lift the rural economy.

Rapid climate change has long been a pain point for the agriculture sector and the industry is had been hoping for the government to announce a robust crop insurance mechanism, which is vital to deal with the damage caused due to extreme fluctuations in weather conditions.

For 2024-25, the government has earmarked Rs 65,529 crore for agricultural schemes, excluding PM-KISAN. Since 2019-20, the agriculture budget has expanded at a CAGR of 5.4 percent, with non-PM-KISAN spending growing at 6.5 percent annually. A significant portion of this expenditure is driven by the crop insurance and modified interest subvention schemes, which together account for over half of the agricultural program spending outside PM-KISAN.

Also Read | Budget 2025: Agri industry hopes for measures to boost farmer incomes, bolster rural infrastructure

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