Agriculture-related stocks rally after fresh guidelines from govt on lockdown

Shares of agriculture-related companies on Wednesday gained sharply after the government allowed farm activities in the second phase of the COVID-19 lockdown.

Deepak Fertilizers and Petrochemicals Corporation advanced 11.45 per cent, Rashtriya Chemicals and Fertilizers zoomed 10.85 per cent, Chambal Fertilizers & Chemicals 8.02 per cent, National Fertilizers 6.78 per cent and Coromandel International 3.89 per cent on the BSE.

Among agrochemicals firm, UPL climbed 7.85 per cent and PI Industries jumped 4.77 per cent.

Godrej Agrovet rose by 6.47 per cent. Tractor maker Escorts gained 3.73 per cent.

Agricultural and allied activities including dairy, fisheries as well as tea, coffee and rubber plantation are allowed in the second phase of the COVID-19 lockdown, the government said on Wednesday issuing fresh guidelines.

"All agricultural and horticultural activities remain fully functional," the Ministry of Home Affairs said, issuing a new set of guidelines for enforcement during the second phase of the lockdown till May 3.

The government has allowed farming operations and farm workers in the field.

As harvesting of rabi crops like wheat is underway, the government has allowed inter and intra state movement of harvesting and sowing related machines like combined harvester and other agriculture and horticulture implements.

That apart, the government has allowed shops of agriculture machinery, its spare parts including its supply chain and repairs to remain open.

For smooth supply of farm inputs during the ongoing sowing of kharif crops, the government has permitted manufacturing, distribution and retail of fertilisers, pesticides and seeds.