Budget 2018: Agri-related stocks surge 10% after Arun Jaitley announces sops for farmers

New Delhi: Shares of agriculture-related stocks surged up to 10 percent on Thursday after finance minister Arun Jaitley said that Budget 2018-19 will focus on strengthening agricultural and rural economy. NACL Industries stock zoomed 9.64%, PI Industries 6.49%, Shakti Pumps India 5.89%, Action Construction Equipment 5.66% and Monsanto India 4.84% on BSE. [caption id=“attachment_4222975” align=“alignleft” width=“380”] File image of Finance Minister Arun Jaitley.[/caption] Among others, shares of Aries Agro gained 4.99%, Dhanuka Agritech 3.89%, Kaveri Seed Company 3.4% and UPL 2.61%. In a major bonanza to farmers, finance minister Arun Jaitley on Thursday announced fixing support price of Kharif crops, like paddy, at least 50% higher than the cost of production, while raising farm credit target for the next fiscal by 10% to Rs 11 lakh crore. Presenting the Union Budget 2018-19, Jaitley reiterated the government’s commitment to welfare of farmers stating that the emphasis is to generate higher income for farmers. Prime Minister Narendra Modi has given a clarion call to double the farmers’ income by 2022, he added. Jaitley said the government has decided to fix the minimum support price (MSP) of coming Kharif (summer sown) crops, which include maize, soyabean and pulses, at least one-and-half times the cost of production. He said the MSPs of most of rabi (winter sown) crops have already been raised. Click here for full coverage of Budget 2018 Follow Live updates on Budget 2018 here