Budget 2019: PM Kisaan Samman Nidhi scheme to boost fertiliser, agri stocks

Market voices were anticipating some form of loan waivers in the Budget, especially in the agriculture space. The move is significant ahead of general elections later in 2019

Interim Finance Minister Piyush Goyal on February 1 while presenting the Interim Budget announced a slew of measures for the rural population on India. The move is in keeping with the government's promise to double farmers’ income by 2022.

To boost farmer income and reduce agriculture stress, Goyal announced the ‘PM Kisaan Samman Nidhi’ scheme for farmers who own up to 2 acres of land. They will be given Rs 500 a month, or Rs 6000 a year, in three equal installments.

"The government of India will solely fund this project. This is to be applicable from December 1, 2018. This will cost Rs 75,000 crore every year which will be borne by the government," said Goyal in his Budget speech.

The move comes ahead of crucial general elections later this year.

Given that agriculture employs 60 percent of India's population, a mega relief package was on the cards, experts had said in anticipation of the Budget. There was an expectation of a hike in fiscal deficit by 100-120bps due to the anticipated sops.

The key beneficiaries following the move as outlined by Karvy Stock Broking include UPL, KRBL, LT Foods, Jain Irrigation, Apex Frozen, and Bayer Crop Science.

Disclaimer:- The views and investment tips expressed by investment experts are their own. Ripples Advisory advises users to check with certified experts before taking any investment decisions.

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