The agriculture reforms in Budget 2024 are set to transform the sector, making it more resilient and profitable for farmers. By focusing on self-sufficiency in oil seeds
The Indian government has introduced significant reforms in the agriculture sector with the Budget 2024, aiming to achieve self-sufficiency and boost farmer incomes. These reforms include the Atmanirbhar Oil Seeds Abhiyan, development of large-scale vegetable production clusters, and various other initiatives to strengthen the agricultural supply chain. Let’s delve into these reforms and explore the stocks that stand to benefit.
Atmanirbhar Oil Seeds Abhiyan: A Path to Self-Reliance
The Atmanirbhar Oil Seeds Abhiyan targets self-sufficiency in oil seeds like groundnut, mustard, soybean, sesame, and sunflower. The initiative encompasses:
- Modern Farming Techniques and Research: Adoption of precision agriculture, sustainable practices, and advanced irrigation. Research for high-yielding and disease-resistant varieties will ensure quality and resilience.
- Value Addition and Market Linkages: Processing raw seeds into oils and other by-products to boost farmers’ income. Improved market linkages will connect farmers directly with markets, reducing intermediaries and ensuring fair prices.
- Procurement and Crop Insurance: Robust procurement strategies and comprehensive crop insurance schemes will provide a safety net for farmers, encouraging investment in oil seed cultivation.
Large-Scale Vegetable Production Clusters
The government is developing large-scale vegetable production clusters near major consumption centers to address issues faced by vegetable growers. This move aims to:
- Promote Farmer-Producer Organizations and Startups: Streamlining the vegetable supply chain by involving FPOs, cooperatives, and startups in collection, storage, and marketing.
- Address Price Volatility and Demand-Supply Fluctuations: Stabilizing prices and ensuring a steady supply of fresh produce, benefiting both farmers and consumers.
Budget Allocations and Future Plans
The Union Government’s budget for FY25 demonstrates a strong commitment to agriculture, with Rs 1.52 lakh crore allocated for the sector. Key initiatives include:
- Release of High-Yielding and Climate-Resilient Crop Varieties: Introducing 109 high-yielding and climate-resilient varieties of 32 field and cultivation crops.
- Promotion of Digital Public Infrastructure for Agriculture: Enhancing digital infrastructure to support farmers, including a computerized crop survey for Kharif crops in 400 districts.
- Encouragement of Natural Farming Practices: Initiating one crore farmers into natural farming over the next two years.
Following the budget announcement, shares of several agri-related companies saw significant activity. Here are some stocks that stand to benefit from these reforms:
- Kaveri Seed Company Ltd: Kaveri Seed Company is engaged into research, production, processing and marketing of various high quality hybrid seeds.
- Jain Irrigation Systems Ltd: One of the leaders in sustainable farming solutions, benefiting from the emphasis on modern farming techniques and advanced irrigation.
- Agri-Tech India: Agri-Tech (India) is engaged in the business of corporate farming. The major farms are situated in various villages in Aurangabad (MS). Company is into production of horticulture crops, basically mangoes
- Mangalam Seeds (MSL): MSL is a sustainable agriculture ISO 9001 certified company which delivers agricultural products. It produces and delivers high quality disease, pest and drought tolerant hybrid seeds
- JK Agri Genetics: JK Agri Genetics Ltd is in the business of Agri & Allied products.
- Nath Bio-Genes India: Engages in producing high-quality seeds, benefiting from the government’s push for value addition and market linkages.
Conclusion
The agriculture reforms in Budget 2024 are set to transform the sector, making it more resilient and profitable for farmers. By focusing on self-sufficiency in oil seeds, developing large-scale vegetable production clusters, and promoting digital infrastructure, the government aims to boost productivity and farmer incomes. Investors should keep an eye on agri-related stocks, as these companies are well-positioned to benefit from the government’s initiatives.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
