Dairy stocks surge as FM Sitharaman announces formulating programme to support farmers

Shares of dairy products manufacturers advanced on February 1 after finance minister Nirmala Sitharaman announced the formulation of a comprehensive program to support dairy farmers.

Parag Milk Foods traded 3.45% higher at Rs 212.65 at around 12.56 pm (IST). On the other hand, the benchmark BSE Sensex traded 0.16% up at 71,864 at around the same time.

Other major listed players including Vadilal Industries and Vadilal Enterprises were up 1.30% and 3.91%, respectively. Modern Dairies were up 2.61% at Rs 30.25. While presenting the Interim Budget 2024, Sitharaman said a comprehensive programme for supporting dairy farmers will be formulated. Efforts are already on to control foot and mouth disease. India is the world’s largest milk producer but with low productivity of milch animals. The programme will be built on the success of existing schemes such Rashtriya Gokul Mission, National Livestock Mission and Infrastructure Development Funds for dairy processing and animal husbandry.

Among the other major updates related to agriculture and food procession, the government will promote private and public investment in post-harvest activities and application of Nano-DAP to be expanded in all agro-climatic zones. The finance minister also added that Atmanirbhar Oilseeds Abhiyaan-Strategy to be formulated to achieve atmanirbharta for oilseeds and implementation of Pradhan Mantri Matsaya Sampada Yojana to be stepped up to enhance aquaculture productivity, double exports and generate more employment opportunities. Integrated aquaparks will also be set up by the government.

Pradeep Gupta, Co-founder and Vice-chairman, Anand Rathi Group said, “The FM has continued to focus on strengthening of domestic macro factors including sustained investments in infra, agriculture, domestic tourism and also sticking to fiscal responsibility with a lower fiscal deficit which could be music to the ears of foreign investors and impending $25 billion bond inclusion in June as lower budget deficits and pared borrowings will help bring down yields. It could open the door for a ratings upgrade.”

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