Andhra Pradesh's Ambitious Horticulture Strategy Takes Center Stage in 2026–27 Budget
The Andhra Pradesh government has positioned horticulture as a cornerstone of its economic growth strategy, with a substantial allocation of ₹1,223.86 crore to the sector and its allied departments in the 2026–27 state budget. This significant financial commitment signals a bold and ambitious push to elevate the state into a global horticulture hub through a proposed mega project valued at ₹1 lakh crore, involving collaboration between the state, the central government, and private partners.
Andhra Pradesh's Dominance in India's Horticulture Landscape
Andhra Pradesh already holds a prominent and influential position in India's horticulture sector, contributing an impressive 15.6% to the country's total fruit production. The state ranks first nationally in the production of several key crops, including oil palm, papaya, cocoa, tomato, and coconut, while securing the second position in chilli production. Banana exports from the state have demonstrated robust global demand, with nearly 1.2 lakh metric tonnes shipped annually to various international markets. In a recent and notable milestone, pomegranates cultivated in Andhra Pradesh achieved a record market price of ₹2 lakh per tonne, highlighting the premium quality and economic potential of the state's horticultural produce.
Strategic Initiatives to Boost Farmer Incomes and Crop Diversification
To ensure stable and enhanced incomes for farmers, the government plans to actively promote horticulture in regions where conventional agriculture is less profitable or faces challenges. A substantial sum of ₹204 crore has been specifically earmarked to encourage and expand oil palm cultivation across the state. Additionally, West Godavari district is set to be developed as a dedicated cocoa hub, with ambitious plans to establish a specialized "Cocoa City" to foster growth and innovation in this niche sector.
The government also intends to convert 5 lakh acres of general agricultural land into commercial horticulture cultivation by 2026–27 under a comprehensive crop diversification programme. This initiative is backed by an allocation of ₹176 crore, aimed at facilitating this transition and supporting farmers in adopting high-value horticultural crops. Recognizing that horticulture typically requires relatively less water compared to traditional farming, the government has allocated ₹475 crore to subsidize micro-irrigation systems. This investment is designed to help farmers achieve higher yields with more efficient water use, promoting sustainability and resilience in agricultural practices.
Expansion Plans and Government Vision for Horticulture Growth
According to Director of Horticulture Side K Srinivasulu, farmers in nearly 10 districts are already reaping the benefits of horticultural crops, experiencing improved livelihoods and economic stability. The government aims to expand horticulture coverage by an additional 2 lakh hectares annually, with a target of reaching 14.4 lakh hectares under cultivation. Beyond production, the strategy includes robust support for farmers in critical areas such as marketing, branding, and exports, ensuring that the horticulture sector's growth translates into tangible economic gains for agricultural communities.
Key Highlights of Andhra Pradesh's Horticulture Budget and Initiatives
- ₹1,223.86 crore allocated for horticulture and allied departments in the 2026–27 state budget.
- ₹204 crore dedicated to promoting oil palm cultivation across the state.
- ₹475 crore allocated for subsidizing micro-irrigation systems to enhance water efficiency.
- 5 lakh acres of general agricultural land to be converted to commercial horticulture by 2026–27.
- 1.2 lakh metric tonnes of bananas exported annually from Andhra Pradesh.
- Record ₹2 lakh per tonne achieved for Andhra Pradesh-grown pomegranates in the market.
- West Godavari district to be developed as a cocoa hub, with plans for a "Cocoa City."
