Budget 2018: Big boost of agricultural and rural economy
In the starting commentary finance ministry announced major relief for the farmers. The government increase in MSP of kharif crops by 1.5 times the cost of produce of the crops. It has earlier increased the MSP of rabi crops by similar percentage. This comes in line with the governments aim at doubling the farmers income by FY2022.
The current agri input is at its record high of 275 MT Further, the government will work with NITI aayog to develop a better price realisation for the farmers. As more than 86 per cent of the famers are small and marginal farmers the government aims to provide major impetus to rural and agricultural economy. In addition, it promised to develop agri-market infra fund wit corpus of Rs.2000 crore. Also, 470 APMCs have been connected to E-NAM network.
The stocks in focus
Markets responded positively to the above announcements. UPL ltd, Kaveri seeds, Jain irrigation are up by 1-2 per cent after the announcement.