At approximately 12:56 pm (IST), Parag Milk Foods witnessed a 3.45% increase in its stock value, reaching Rs 212.65. Concurrently, the benchmark BSE Sensex exhibited a 0.16% upward movement, standing at 71,864.
The share prices of dairy product manufacturers experienced an increase on February 1 following an announcement by Finance Minister Nirmala Sitharaman. She revealed the initiation of a comprehensive program aimed at supporting dairy farmers.
At approximately 12:56 pm (IST), Parag Milk Foods exhibited a 3.45% increase in its stock value, reaching Rs 212.65. In contrast, the benchmark BSE Sensex recorded a 0.16% upward movement, standing at 71,864 around the same time.This indicates a positive trend in both the specific dairy stock (Parag Milk Foods) and the broader market index (BSE Sensex) during that particular time frame.
Other major listed players in the dairy sector, including Vadilal Industries and Vadilal Enterprises, showed positive movements, with gains of 1.30% and 3.91%, respectively. Modern Dairies also saw an increase of 2.61%, trading at Rs 30.25. The positive market reactions followed Finance Minister Sitharaman’s announcement during the presentation of the Interim Budget 2024.
She stated that a comprehensive program would be formulated to support dairy farmers. Notably, efforts are underway to control foot and mouth disease. Despite being the world’s largest milk producer, India faces challenges related to low productivity of milch animals.
The proposed program aims to build on the success of existing schemes like the Rashtriya Gokul Mission, National Livestock Mission, and Infrastructure Development Funds for dairy processing and animal husbandry.
In additional updates related to agriculture and food processing, the government has outlined several initiatives. These include the promotion of private and public investment in post-harvest activities and the expansion of Nano-DAP application across all agro-climatic zones. The Finance Minister also announced the formulation of the Atmanirbhar Oilseeds Abhiyaan to achieve self-reliance in oilseeds.
The implementation of the Pradhan Mantri Matsaya Sampada Yojana will be intensified to enhance aquaculture productivity, double exports, and generate more employment opportunities. Furthermore, the government plans to establish integrated aquaparks as part of these initiatives.
Pradeep Gupta, Co-founder and Vice-chairman of Anand Rathi Group, commented on the budget, stating, “The FM has continued to focus on strengthening domestic macro factors, including sustained investments in infrastructure, agriculture, and domestic tourism.
Sticking to fiscal responsibility with a lower fiscal deficit could be music to the ears of foreign investors, especially with the impending $25 billion bond inclusion in June. Lower budget deficits and reduced borrowings are expected to bring down yields, potentially opening the door for a ratings upgrade.”
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