Food processing stocks surge as Budget allocation doubles

Shares of food processing firms ended with up to 10 per cent gains today after the Budget proposed doubling the allocation for the sector to Rs 1,400 crore for the next fiscal.
Sheetal Cool Products stock soared 10 per cent, Avanti Feeds 7.95 per cent, Freshtrop Fruits 7.55 per cent and Godrej Agrovet 1 per cent on BSE.
To ensure better returns to farmers, the government today doubled budget allocation to the food processing ministry to Rs 1,400 crore for 2018-19 fiscal and set up institutions to finance agro-processing projects.
Presenting a pro-farmer budget for 2018-19 fiscal, Finance Minister Arun Jaitley said the food processing sector is growing at an average rate of 8 per cent per annum.

"The allocation of the ministry of food processing is being doubled from Rs 715 crore for 2017-18 to Rs 1,400 crore in 2018-19.