A farmer works in a millet field won the outskirts of Bengaluru, India. (Source: Photographer: Dhiraj Singh/Bloomberg, 2017)

Union Budget: Agriculture Stocks Soar Up To 10% On Budget Announcement 

Shares of agriculture-related stocks surged up to 10 percent today after Finance Minister Arun Jaitley said that Budget 2018-19 will focus on strengthening agricultural and rural economy.

NACL Industries Ltd. stock zoomed 9.64 percent, PI Industries Ltd. 6.49 percent, Shakti Pumps (India) Ltd. 5.89 per cent, Action Construction Equipment Ltd. 5.66 per cent and Monsanto India Ltd. 4.84 per cent on BSE.

Among others, shares of Aries Agro Ltd. gained 4.99 per cent, Dhanuka Agritech Ltd. 3.89 per cent, Kaveri Seed Company Ltd. 3.4 per cent and UPL Ltd. 2.61 per cent.

In a major bonanza to farmers, Finance Minister Arun Jaitley today announced fixing minimum support price of Kharif crops, like paddy, at least 50 percent higher than the cost of production, while raising farm credit target for the next financial year by 10 percent to Rs 11 lakh crore.

Presenting the Union Budget 2018-19, Jaitley reiterated the government's commitment to welfare of farmers stating that the emphasis is to generate higher income for farmers.

Prime Minister Narendra Modi has given a clarion call to double the farmers' income by 2022, he added.

Jaitley said the government has decided to fix the minimum support price (MSP) of coming Kharif (summer sown) crops, which include maize, soyabean and pulses, at least one-and-half times the cost of production.

He said the MSPs of most of rabi (winter sown) crops have already been raised.