Agri-related stocks gain up to 5% amid Budget announcement

Shares of companies related to agriculture sector rose by as much as 5% today after Finance Minister Arun Jaitley announced a whopping Rs 1 lakh crore hike in credit target for the next fiscal to Rs 10 lakh crore as part of efforts to double farm incomes in the next five years.

Dhanuka Agritech surged 5.17%, Jain Irrigation Systems rose 3.17% and Kaveri Seed Company gained 1.52% on the BSE.

Shares of Monsanto India gained 1.13% and UPL went up by 0.75%.

"The target for agricultural credit in 2017-18 has been fixed at a record level of Rs 10 lakh crore," Jaitley said in his Budget speech.

The Finance Minister noted that the agriculture sector is expected to grow at 4.1% during the current fiscal on good monsoon.

Jaitley said the allocation for new crop insurance scheme 'Pradhan Mantri Fasal Bima Yojana', which was launched last year, has been increased to Rs 13,240 crore this fiscal from budgeted Rs 5,500 crore. The allocation for the next fiscal has been earmarked at Rs 9,000 crore.