Shares of companies related to agriculture business rose by up to 7 per cent on Monday after Finance Minister Arun Jaitley announced an allocation of nearly Rs 36,000 crore for the farm sector and higher credit target, aimed at doubling farmer incomes in 5 years.
Jain Irrigation Systems soared 7.13 per cent, PI Industries surged 5.5 per cent, Kaveri Seed Company (4.28 per cent), Monsanto India (3.24 per cent) and Rallis India (2.46 per cent) on BSE.
FULL COVERAGE:Union Budget 2016
Aiming to double farmers income by 2022, Finance Minister Arun Jaitley announced an allocation of nearly Rs 36,000 crore for the farm sector while raising the agri-credit target to Rs 9 lakh crore for the next fiscal.
He also allocated Rs 15,000 crore for interest subvention on the farm credit, Rs 5,500 crore for the new crop insurance scheme and Rs 500 crore to boost pulses output.
"Our total allocation on agriculture and farmers welfare is Rs 35,984 crore," Jaitley said.
Stating that irrigation is critical for increasing the agricultural production and productivity, he said," the Pradhan Mantri Krishi Sichai Yojana has been strengthened and implemented in mission mode."