The Finance Minister said Rs 2.83 lakh crore will be allocated for agri and irrigation schemes.
Most agri-sector stocks traded with healthy gains on BSE after Finance Minister Nirmala Sitharaman in her Budget speech said the government is committed to doubling farmers' income by 2022 and proposed a 16-point action plan to aid farmers.
Besides, the minister said Rs 2.83 lakh crore will be allocated for agricultural and irrigation schemes.
Shares of Nagarjuna Agri Tech surged 5 percent while those of Shivalik Rasayan, Sharda Cropchem, Bhagiradha Chemicals & Industries and Sumitomo Chemical India climbed over 2 percent each.
Shares of Aimco Pesticides, Insecticides (India) and NACL Industries climbed 1 percent each.
However, some fertiliser stocks witnessed selling pressure after the Budget showed the government is intended to give a push to organic farming.
Aksh Vashisth, Analyst- Chemicals at IndiaNivesh said the focus on promoting traditional organic and other innovative fertilizer with a view to change incentive regime which promotes the use of chemical fertilizers. This comes in after the government stressed on zero budget farming in the previous budget.
"This is negative for fertilizer companies as zero-budget farming significantly cuts down on agri-input consumption. However, the concept is still in the nascent stage as the lack of use of chemical inputs results in lower yield an production. The concept is being pioneered in Andhra Pradesh and has received mixed reviews from farmers," said Vashisth.
The Finance Minister said the Budget is centred around three themes of aspirational India, economic development and a caring society.The market benchmarks are trading in the green as the minister delivers her Budget speech.
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