Union Budget 2024: Kaveri Seed up 14%; govt to release high yielding crops

Union Budget 2024 news: Finance Minister Nirmala Sitharaman said the government will release new 109 high yielding, climate resilient seeds for 32 field and horticulture crops

Union Budget 2024 impact: Shares of Kaveri Seed Company hit a new high of Rs 1,099.95 as they surged 14 per cent on the BSE in Tuesday's intraday trade after Finance Minister Nirmala Sitharaman said the government will release new 109 high yielding, climate resilient seeds for 32 field and horticulture crops.

"New 109 high-yielding and climate resilient varieties of 32 field and horticulture crops will be released for cultivation by farmers. In the next 2 years, 1 crore farmers will be initiated into natural farming supported by certification and branding," FM Nirmala Sitharaman said on July 23, 2024.

The Government aims to undertake a comprehensive review of agricultural research and focus on developing climate resilient varieties in agriculture, the finance minister said while presenting the first Union Budget of the Modi 3.0 government and her 7th consecutive one during the Monsoon Session of Parliament.

Kaveri Seed Company is one of the leading agricultural seed production companies in India. As a prominent player in the agricultural sector, the company specialises in the development and distribution of hybrid seeds for key Indian crops. Its commitment to innovation and research is highly regarded by the Government of India (GoI), thus enabling the company to continuously evolve and introduce new products tailored to different seed segments, including cotton and non cotton crops.

Kaveri Seeds has an extensive product portfolio encompassing a wide range of high-yielding seeds for field crops such as maize, cotton, rice, pearl millet, mustard, wheat, sorghum, sunflower, and various vegetable crops. With a strong local presence, the Company has also experienced remarkable growth in the international market, successfully exporting its products to countries such as Pakistan, Sri Lanka, Bangladesh and Vietnam.

"The Government’s commitment to advancing Indian research and encouraging approvals for indigenously developed new hybrid and advanced seed varieties will augur well for us in the coming years. This will facilitate our overall expansion and we anticipate a revolution in seed technology advancements from both domestic and international businesses," Kaveri Seed had said in its FY23 annual report.

The competition in crop production, particularly concerning value-added traits, is expected to intensify. This trend is driven by the need to address climate change and shifts, which contribute to the increasing complexity of diseases and their impact on the durability of agricultural products. To meet these challenges, there is a growing emphasis on fast-track breeding using new genetic technologies, the company said.

Over the course of ten years, the vegetable seed market is forecast to grow by 50 per cent. This growth is likely to be accompanied by an increase in the area dedicated to vegetable cultivation, estimated to rise from 9.8 million hectares to 12 million hectares. This expansion is driven by rising demand and market trends.

To keep pace with the evolving industry, a more sustainable seed business model is necessary, characterised by robust systems, processes, and well-defined business plans, as adopted by many MNCs. Additionally, the export of vegetable seeds is witnessing an increasing trend, indicating potential opportunities for market expansion and international trade, the company said.