Transforming Horticulture Sector

of Andhra Pradesh :
Interventions for Sustainable
Growth
AP Largest Producer of Fruits in the country, contributing ~15% to
national production

Characteristic AP Fruits Spices Crop AP Rank

Citrus 1st (22%)

Area Under Cultivation 18.23 lakh hectares 7.95 lakh hectares 3.24 lakh hectares

Dragon Fruit 1st (52%)

Production Volume 365.92 lakh MT 200 lakh MT 20.15 lakh MT
Cocoa 1st (41%)
National Share (Area) 5.7% 11% 6%
Red Chillies 1st (45%)

National Share (Production) 7.6% 15.7% 11% Banana 2nd (15.5%)

India Ranking (Production) Mango 2nd (22%)

5th Largest 1st Largest 2nd Largest

Papaya 2nd (17.6%)

Contribution to GVA (2024-25) Rs. 60,527 Cr. (FAE)

Cashew Nut 2nd (17%)

Conversion to Horticulture
Crops (2024- 25) 1,43,329 acres
Coconut 4th (8%)

Source: 1) AP Socio Economic Survey 2024-25,

2) Agriwelfare.gov.in 2023-24
Area and Production trends of key fruit crops of Andhra Pradesh

Citrus Area and Production Over last 5 Banana Area and Production Over last 5 Mango Area and Production Over last 5
Years in AP Years in AP Years in AP
1.6 35 1.2 80 4.1 51
1.59 72.29 49.85 49.85 49.85
1.59 33.51 33.69 34 1.09 50
1.1 68.37 70 3.98 3.98 3.98
1.58 1.58 1.11 65.16 4
33 49
1.58 1.06 1.07 3.93
1.57 1 58.34 60
31.62 31.74 31.74 32
1.57 3.9 48
0.97 56.84 47.27
31
0.9 50 47
1.56
30 3.8
3.76
1.55 0.8 40 46
29 45.17
1.54
1.54 3.7 45
28 0.7 30
1.53 44
27
3.6
0.6 20
1.52 26 43

1.51 25 0.5 10 3.5 42

2020-21 2021-22 2022-23 2023-24 2024-25 2020-21 2021-22 2022-23 2023-24 2024-25 2020-21 2021-22 2022-23 2023-24 2024-25

Production LMT Area Lakh Ha Production LMT Area Lakh Ha Production LMT Area Lakh Ha

Stable area, declining/stagnant production over the past years

Source: Agriwelfare.gov.in
Export trends of Fruits and Vegetables-Andhra Pradesh has
declining trend in Exports
1650
• While Andhra Pradesh is top
1450 producer of several fruit crops it’s
exports are declining
1250
• Maharashtra, Gujarat and Tamil
Nadu together contribute to over
1050 70% of export of fruits and
vegetables
850
• AP contribution to exports of fruits
650
and vegetables on an average is
only ~3.9%
450 • Over the last 5 years exports by key
states saw an increasing trend,
250 while AP has declining trend

50
Maharashtra Gujarat Tamil Nadu Andhra Pradesh

FY 2020-21 ($Mn) FY 2021-22 ($Mn) FY 2022-23 ($Mn) FY 2023-24 ($Mn) FY 2024-25 ($Mn)

Source: niryat.gov.in
Key factors contributing for the observed trends in key fruit crops

High Post- Limited Adoption of Climate Risks Low export share despite
Harvest Losses Modern Practices high output
Adoption of micro-irrigation in Erratic weather patterns Lack of export-compliant
AP faces 15–20% post-harvest AP (9.19 L Ha) is low negatively affected yields. infrastructure limits exports, AP
losses in horticulture crops due compared to other states viz., Pests and diseases further exports fruits and vegetables
to inadequate post harvest Karnataka (18.01 L Ha), exacerbate the problems. ($123.96 Mn, 3.39%) less than
infrasrtucture Tamil Nadu (10.97 L Ha), Maharashtra ($1516.54 Mn,
Maharashtra (9.38 L Ha) 41.51%), Gujarat ($760 Mn,
under PMKSY limits yield 21%) and Tamil Nadu ($324
improvements. Mn, 9%) in 2023-24.
Value chain challenges of the Horticulture Crops in both Upstream
and downstream activities of AP

Inputs Irrigation Financial Research & Human Capital Farmer Natural Capital
Services Planning Organizations

Challenges-
Upstream Low workforce
Quality Over reliance on Less penetration of Release of New Lack of access to Decrease in
Activities seed/saplings ground water Kisan Credit Cards varieties is low with government capital soil health

Lack of climate Less micro irrigation Low credit ticket Low climate resilient Low skill District/State
resilient varieties adoption size varieties development among federations Decrease in
rural youth unavailable availability of
ground water
Lack of standardized Low watersheds No mechanization Less trainings and Branding of products
High Interest rates
organic inputs development advancements awareness on G.A.P unavailable

Storage Transportation Processing

• Low on-farm infrastructure • Poor road infrastructure in the rural areas • Limited value addition and low no.s of MSMEs in food processing
• Low Integrated Cold Chain Infrastructure • Limited air connectivity • Lack of processing suitable varieties
• High Post Harvest losses • Limited refer and rail logistics

Challenges-
Downstream
Activities

Markets Exports Crop Insurance

• Establishment of dedicated Market Yards for horticulture • Awareness on requirements and documentation • Less penetration of crop insurance
produce is limited • Lacks export compliant infrastructure • Lacks real time assessments
• High dependence on intermediaries and commission agents • Lacks credible certifications and GI tagging
Bridging the Gap: From Challenges to Opportunities
Four Key Opportunities for the growth of Horticulture Sector of AP

• Andhra Pradesh’s horticulture sector stands at a crossroads — while it is the largest fruit producer in India, critical
upstream and downstream challenges hinder its full potential.
• Stagnant productivity, declining exports, and value chain inefficiencies threaten the state's competitiveness.
• Untapped opportunities:
 Leveraging policy, technology, and market reforms.
 Reimagining supply chains, infrastructure, and markets.

Global Demand Value Addition Food Processing Technology Infrastructure

• Global exports of tropical fruits • Increased export demand-USD • Precision agriculture, IoT, • MIDH, RKVY, APEDA, NHB,
estimated to grow by 3 percent 10.88 billion, contributing 23.4% of and drones can be used. and state schemes are
• Tropical fruits (Mango, the total agri-food exports. • Adoption of climate resilient available for creation of world
Pineapple, Avocadoes) hold a • Increased Domestic demand- FP practices reducing the crop class infrastructure
high average export unit value sector has been growing at an damages and safeguarding • PMFME, MFP schemes
exceeding USD 1,200 per ton Average Annual Growth Rate small holding farmers available for creation of state
(FAO) (AAGR) of around 7.26% of art processing facilities
Proposed Targeted Policy Interventions for Horticulture Growth in
Andhra Pradesh
1. Target Export Growth: 4. Promote Processing & Value Addition
• AP: ~15% of national fruit production, but only ~3.9% of exports • Goal: Promote food processing clusters linked to PMFME, Mega
• Goal: Raise AP's fruit/veg export share to 10% Food Parks
• Strategy: Cluster-based, tech-driven, and quality-focused • Focus products: Mango pulp, Banana chips, Citrus juice
interventions • Strategy: Establish new processing units and increase horticulture
processing capacity by 2x
2. Integrate a Cluster-Based Export Strategy:
• Goal: Establish 10 Horticulture Export Clusters based on crop-district 5. Financial Access for Farmers
mapping: • Goal: Expand Kisan Credit Card (KCC) saturation in low-lending
 Mango: Chittoor, Krishna districts, Increase priority lending through DCCBs and State Coop
 Banana: Kadapa, Anantapur Banks
 Citrus: Anantapur, Kurnool • Strategy: Launch interest subvention in identified horticulture belts
• Strategy: Establish packhouses, reefer logistics & export
certifications 6. Quality & Market Readiness
• Goal: Rollout of GAP certification, supply of Quality Inputs and GI
3. Infrastructure Expansion tagging
• Goal: Promote micro-irrigation, high-density planting, drones, • Strategy: Add 5 new GI-tagged horticulture crops, Enforce nursery-
renewable energy, Expand post-harvest management (PHM) & cold level quality control for planting material and Establish organic
chain infra input units
• Strategy: Increase micro-irrigation coverage by 50%, New PHM units
across identified districts

Relevant Govt., of India Schemes to be leveraged: PM Krishi Sinchayee Yojana, Horticulture Cluster Development Programme, Mission for Integrated Horticulture
Development, Agriculture Interest Subvention Scheme, Rashtriya Krishi Vikas Yojana, PM-PRANAM, APEDA-Assistance for Establishment of Processing and
Supply Chain Infrastructure, Mega Food Park Scheme, National Horticulture Mission, PM-KISAN
Proposed other interventions for the growth of Horticulture Sector
of AP

Capacity Technology Branding and

Characteristic Building Adoption Marketing Entrepreneurship

G.A.P, IPM and organic IoT sensors, drone Branding, e- Processing units,
Key Actions
farming training spraying commerce tie-ups entrepreneurship training

Partners ICAR, KVKs, NGOs, SAUs PPPs, SHGs, FPOs Amazon, Big Basket, ONDC APSSDC, MANAGE,
NI-MSME, NGOs

5,000 workshops in key 500 micro IoT clusters, Develop "Andhra 1.5 lakh rural youth training,
Targets pilot drone programs 25,000 women training
horticulture Clusters Greens-Brand

Relevant Govt., of India Promotion of 10,000 farmer-producer organizations and cooperatives, National Mission Sustainable Agriculture,
Scheme to be leveraged PMFME, Entrepreneurship and Skill Development Programme (ESDP), RKVY-RAFTAAR, e-NAM, RKVY-Innovation
and Agri-Entrepreneurship Development etc.,
Outcomes from the proposed intervention for the horticulture
sector
Improved Export Competitiveness
Raise export share from ~3.9% to
10% with GI tagging, GAP
certification, export clusters.

Inclusive Farmer Empowerment

Increased incomes for over 2 lakh
farmers through increased credit
access, markets and technologies.

Horticulture
Growth Employment & Value Chain
Development
Creates 50,000+ rural jobs via
clusters, processing hubs, logistics
and FPO-led value chains

Resource Efficiency
Increase in micro-irrigation-water
stewardship, increase in processing
capacity-better value addition and ROI
Thank you