Fertiliser and agrochemical stocks corrected in the range of 1-12 percent on July 5 after Finance Minister Nirmala Sitharaman emphasised on Zero Budget Farming.
Madras Fertilisers was the biggest loser, down 12 percent, followed by National Fertilizers, Aries Agro, Mangalore Chemicals, GNFC, RCF, UPL and Dhanuka Agritech that slipped 4-8 percent.
Zero budget farming aims at ending the reliance of farmers on loans and reducing their production costs and in turn ending the debt trap (debt cycle) for farmers.
"The word ‘budget’ refers to credit and expenses and hence ‘Zero Budget Farming’ means farming that is free of any loans, credits, and expenses on purchased inputs (like seeds, fertilizers, chemicals etc.),” Gaurav Garg, head of Research at CapitalVia Global Research told Moneycontrol.
He said Zero budget farming aims to double farm income, especially by reducing loan burden and getting the farmers out of the trap.
"This would also provide a large scale impact socially, by reducing suicide incidents among farmers. This scheme, if implemented properly, can make a huge impact socially as it is intended towards reducing farm distress," he added.
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