Agri stocks gain after Cabinet okays Pradhan Mantri Krishi Sinchayee Yojana

Shares of eight companies whose business is linked with agriculture rose by 0.06% to 7.67% at 15:50 IST on BSE after Cabinet today, 2 July 2015, gave its approval to a new scheme, the Pradhan Mantri Krishi Sinchayee Yojana.

Meanwhile, the BSE Sensex was down 48.81 points, or 0.17%, to 27,972.06.

Among agri linked stocks, Jain Irrigation (up 2.59%), Shakti Pumps (up 2.52%), Finolex Industries (up 7.67%), Mahindra & Mahindra (M&M) (up 1.76%), Dhanuka Agritech (up 1.47%), Monsanta India (up 1.23%), Kaveri Seed Company (up 0.06%) and Advanta (up 5.15%) gained.

The Cabinet Committee on Economic Affairs (CCEA), chaired by the Prime Minister Narendra Modi today, 2 July 2015, has given its approval to a new scheme the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY). It will have an outlay of Rs 50000 crore over a period of five years (2015-16 to 2019-20). The allocation for the current financial year is Rs 5300 crore.

The major objective of the PMKSY is to achieve convergence of investments in irrigation at the field level, expand cultivable area under assured irrigation (Har Khet ko pani), improve on-farm water use efficiency to reduce wastage of water, enhance the adoption of precision-irrigation and other water saving technologies (More crop per drop), enhance recharge of aquifers and introduce sustainable water conservation practices by exploring the feasibility of reusing treated municipal based water for peri-urban agriculture and attract greater private investment in precision irrigation system. The scheme also aims at bringing concerned Ministries/Departments/Agencies/Research and Financial Institutions engaged in creation/use/recycling/potential recycling of water, brought under a common platform, so that a comprehensive and holistic view of the entire "water cycle" is taken into account and proper water budgeting is done for all sectors namely, household, agriculture and industries.

The programme architecture of PMKSY aims at a 'decentralized State level planning and execution' structure, in order to allow States to draw up a District Irrigation Plan (DIP) and a State Irrigation Plan (SIP). DIP will have holistic developmental perspective of the district outlining medium to long term developmental plans integrating three components namely, water sources, distribution network and water use application of the district to be prepared at two levels - the block and the district. All structures created under the schemes will be geotagged.

It is expected that PMKSY will provide convergence to existing schemes of water management, thus bringing efficiency to the use of water.

Taking a step further after taking many farmer friendly initiatives, Cabinet Committee on Economic Affairs, chaired by the Prime Minister today, 2 July 2015, has given its approval to two new schemes in agriculture sector. These are the PMKSY and Promotion of National Agriculture Market.

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