Rs 20-trn agri credit outlay to boost tractor manufacturers, PSBs: Analysts

However, fertiliser stocks may not see another upsurge as they have have more-than-doubled in the last six months, they said

The Rs 20-trillion agricultural credit support to the farm sector, proposed in the Union Budget 2023-24, is expected to generate long-term benefits for farm-linked credit financiers and tractor manufacturers in the long-term, analysts said. However, fertiliser players could see limited upside, they added.

"Since fertiliser stocks have more-than-doubled in the last six months, we do not see building blocks for another upsurge," said AK Prabhakar, head of research, IDBI Capital.

The government, on February 1, proposed to expand agriculture credit target by 11 per cent year-on-year (YoY) to Rs 20 trillion in FY23-24. The total fertiliser subsidy, however, was lowered