File image of Arun Jaitley. (Image: PTI)
New Delhi: Shares of companies related to agriculture sector rose by as much as 5 per cent on Wednesday after Finance Minister Arun Jaitley announced a whopping Rs 1 lakh crore hike in credit target for the next fiscal to Rs 10 lakh crore as part of efforts to double farm incomes in the next five years.
Dhanuka Agritech surged 5.17 per cent, Jain Irrigation Systems rose 3.17 per cent and Kaveri Seed Company gained 1.52 per cent on the BSE.
Shares of Monsanto India gained 1.13 per cent and UPL went up by 0.75 per cent.
“The target for agricultural credit in 2017-18 has been fixed at a record level of Rs 10 lakh crore,” Jaitley said in his Budget speech.
The Finance Minister noted that the agriculture sector is expected to grow at 4.1 per cent during the current fiscal on good monsoon.
Jaitley said the allocation for new crop insurance scheme ‘Pradhan Mantri Fasal Bima Yojana’, which was launched last year, has been increased to Rs 13,240 crore this fiscal from budgeted Rs 5,500 crore. The allocation for the next fiscal has been earmarked at Rs 9,000 crore.