Agriculture, FMCG and sugar stocks trade mixed as agriculture ministry to kick-start its 100-day plan

Agriculture, FMCG and sugar stocks have gathered focus in Tuesday’s (June 11) trade after the former Madhya Pradesh Chief Minister Shivraj Singh Chauhan has been allocated the Agriculture and Rural Development Ministry. 

Shares of agri-focussed stocks including the likes of Rallis India (up 0.62 per cent), Dhanuka Agritech (up 3.4 per cent), Coromandel International (up 2.6 per cent), National Fertilisers Limited (down 2 per cent) Rashtriya Chemicals Fertilisers (down 2 per cent) and Fertilisers And Chemicals Travancore (FACT) (down 2.3 per cent) traded mixed.

FMCG stocks, however, traded flat to positive. ITC stock at the last count was (down 0.3 per cent),  Britannia (up 1.5 per cent), Marico (down 0.2 per cent, Nestle (down 0.5 per cent) and HUL (down 0.1 per cent), with Britannia and GCPL leading the pack with gains of over 1 per cent.

Meanwhile, as the ministry takes charge, here is a quick outline of the Agriculture Ministry’s 100-day plan:

The ministry will work towards making the country self-reliant in edible oil and pulses. Further, for achieving ‘self-reliance in pulses by 2027’, it will come up with a new policy framework. Simultaneously, the government will look to reduce the import of edible oil. As per a report, the country’s edible oil import reduced by 12 per cent to 7.14 million tonne in the first six months of the 2023-24 oil year (November-October) compared to the same period last oil year.

Besides, the ministry will target increasing ethanol supply. The Centre is planning a special focus on reducing imports of pulses and edible oil, increasing ethanol supply and stabilizing food prices as part of its 100-day agenda, said the senior official.

For the same, the government will provide incentives as well as lay out SoPs. "We are working on SoPs (Standard Operating Procedures) and depending on budgetary allocation; we will take the programme forward,” noted the official.

Experts views on the Ministry's 100-day agenda

Chokkalingam G, Equinomics Research said this would boost rural spend. Therefore investors may consider stocks like ITC, Britannia and HUL.

Aamar Deo Singh, Sr. Vice President, Research, Angel One believes that the new government's focus on agriculture over the next 100 days bodes well for fertilizer and FMCG companies, as this step by the government can lead to enhanced earnings for those engaged in agriculture. So, keeping a sharp watch on stocks in these two sectors can be a profitable option in the coming months.