Budget 2024: Kaveri Seed, Avanti Feeds, Coastal Corp, Zeal Aqua rise 2-10% as govt allocates ₹1.52 tn for agri sector

Shares of Kaveri Seed Company, Avanti Feeds, Coastal Corporation, Zeal Aqua, and BKV Industries surged 2% to 10% on Tuesday. Finance Minister Nirmala Sitharaman announced in her budget address that the Indian government will set aside ₹1.52 trillion.

“This year, I have made a provision of 1.52 lakh crore rupees for agriculture and allied sectors,” said Nirmala Sitharaman.

Further, Sitharaman said that shrimp production and export financial support for setting up a network of nucleus breeding centers for shrimp rootstocks will be provided. Financing for shrimp farming, processing, and export will be facilitated. Our government will bring out a national cooperation policy for systematic, orderly, and all-around development of the cooperative security sector. Fast-tracking growth of the rural economy and the generation of employment opportunities on a large scale will be the policy goal.

Finance Minister Sitharaman underlined the importance of agricultural research and development.

She announcedthat significant financing will be granted for research and development efforts, with an emphasis on pulse and oilseed production, storage, and commercialisation.

"We will strengthen their production, storage, and marketing," she stated.

This effort seeks to establish "atmanirbharta" (self-sufficiency) in oilseeds such mustard, peanut, sesame, soybean, and sunflower.

As announced in the interim budget, a plan has been implemented to attain "Atmanirbharta" for oil seeds such as mustard, peanut, sesame, soybean, and sunflower, she stated.

To improve the supply chain for vegetables, the budget recommends the establishment of large-scale vegetable production clusters near significant consumption centers.

"Lage scale clusters for vegetable production will be developed closer to major consumption centres. We will promote farmer producer organisations, co operatives and startups for vegetables supply chains including for collections, storage and marketing," she said.

Sitharaman launched a three-year plan to improve digital public infrastructure for agriculture, with the goal of fully covering farmers and their properties.

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, the stocks have gained significant traction following the budget announcement supporting agriculture. Such activity is typical during major events, but the closing prices need to be closely monitored. Currently, prices indicate a breakout in terms of both price and volume. If this breakout holds at closing, this sector is likely to outperform in the near term.

“Within this sector, Kaveri Seed Company appears particularly strong, showing a multi-year breakout above the 1,000 level. This breakout could potentially drive the stock toward 1,300 in the near term,” added Bhosale.

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