In a move aimed at boosting farmer incomes and strengthening market infrastructure, Andhra Pradesh Chief Minister N. Chandrababu Naidu has formally requested the central government to provide financial assistance of ₹200 crore for rolling out an Integrated Coconut Development and Market Strengthening Programme in the southern state. The initiative is expected to stabilise coconut prices, enhance processing capabilities, and position Andhra Pradesh as a leading hub for tender coconut and value-added coconut products nationally.

The Proposal: Addressing Challenges in Coconut Cultivation

Coconut cultivation in Andhra Pradesh is among the most productive in India. According to the Chief Minister’s letter to Union Agriculture Minister Shivraj Singh Chouhan, dated December 16, the state ranks fourth nationally in coconut cultivation, with 108,000 hectares under cultivation and a total annual output of 1,735 million nuts. The state also boasts the highest productivity, averaging around 16,000 nuts per hectare.

Despite these advantages, coconut farmers face persistent challenges. Price volatility, limited market access, climate-related crop losses, pest and disease outbreaks, and insufficient processing capacity continue to hinder the sector’s growth. Naidu’s proposal highlights the absence of organised tender coconut markets as a significant obstacle, resulting in inconsistent prices and financial uncertainty for cultivators.

“To address these constraints, the proposed ₹200-crore programme focuses on modernising market access, promoting value addition, and improving overall cultivation efficiency,” the Chief Minister wrote.

Key Components of the Programme

The Integrated Coconut Development Programme is designed as a multi-pronged intervention, combining market development, value addition, technology integration, and farmer support. Key elements include:

1. Modern Tender Coconut Market Hubs: The programme proposes the establishment of modern, organised market hubs in major production clusters, modelled on Karnataka’s Maddur tender coconut market. These hubs aim to ensure transparent pricing, reduce intermediaries, and provide a direct channel for farmers to access buyers.
2. Integrated Coconut Processing Park: A major highlight of the proposal is the creation of a processing park to produce high-value coconut products such as virgin coconut oil, desiccated coconut, packaged tender coconut water, and coir-based items. This park is intended to serve as a central hub for value addition, promoting entrepreneurship and local employment.
3. Expansion of Nurseries: Ensuring the availability of quality, climate-resilient planting material is another key aspect. The programme plans to expand nurseries for varieties like the Niu Leka Dwarf, which are better suited to withstand environmental stresses and pests, thereby boosting productivity and resilience.
4. Technology Integration: Modern agricultural technologies are central to the programme. This includes:
   • AI-based advisories for precision farming and real-time cultivation guidance.
   • Drone-led monitoring and spraying to enhance crop health and reduce pest and disease incidence.
   • Digital market access platforms that enable farmers to directly interact with buyers, track prices, and make informed marketing decisions.
5. Pest and Disease Management: The programme emphasizes strengthened measures for pest and disease control, including timely interventions, farmer training, and awareness campaigns to minimise losses.
6. Capacity Building and Farmer Training: To complement technological and infrastructural improvements, the plan incorporates extensive training for farmers, enabling them to adopt modern cultivation techniques, understand market dynamics, and leverage value-added opportunities effectively.

Expected Impact

The proposed programme is projected to deliver multiple economic and social benefits:

• Price Stabilisation: By organising markets and enhancing processing capabilities, the farm-gate price of tender coconuts could rise from ₹11–15 per nut to ₹35–40 per nut, significantly increasing farmer incomes.
• Reduction in Crop Losses: Effective pest and disease management, combined with resilient planting material, could cut climate- and pest-related losses by 20–25%.
• Employment Generation: The initiative is expected to create approximately 15,000 rural jobs in cultivation, processing, and market operations.
• Promotion of Value-Added Products: By establishing integrated processing facilities, Andhra Pradesh could emerge as a national hub for value-added coconut products, enhancing export potential and promoting the state’s agricultural brand globally.

Alignment with National Priorities

Naidu highlighted that the programme aligns with several national priorities, including:

• Doubling Farmers’ Income: Through market reforms and value addition, the initiative directly contributes to enhancing agricultural income.
• Atmanirbhar Bharat: Promoting domestic processing and high-value coconut products supports the goal of self-reliance.
• Export Promotion: Value-added coconut products have significant export potential, which can improve India’s trade balance and global agricultural footprint.
• Rural Employment: Job creation in cultivation, processing, and market operations directly benefits rural communities, reducing migration pressures and fostering sustainable livelihoods.

Previous Efforts and Support

The call for central assistance follows ongoing efforts by the Andhra Pradesh government to address the challenges faced by coconut farmers. Earlier, IT and Industries Minister Nara Lokesh had raised concerns regarding inadequate market infrastructure and processing facilities during a meeting with Union Agriculture Minister Chouhan on December 2 in New Delhi. The current proposal builds upon these discussions, presenting a structured and scalable plan to modernise the sector.

Significance of the Programme

Coconut cultivation is a critical agricultural activity in Andhra Pradesh, contributing not only to farmer livelihoods but also to the state’s agro-industrial ecosystem. However, traditional practices, fragmented markets, and vulnerability to climatic variations have constrained the sector’s growth. The Integrated Coconut Development Programme represents a holistic approach, combining infrastructure, technology, market reforms, and farmer support to unlock the sector’s full potential.

Experts note that if implemented effectively, the programme could serve as a model for other coconut-growing states, demonstrating how strategic investments and modernisation can stabilise prices, promote value addition, and enhance competitiveness.

Way Forward

With the formal request submitted to the Union government, the next step will involve assessment and approval of the ₹200-crore funding under relevant central schemes. Upon approval, Andhra Pradesh plans to initiate pilot projects in key production clusters, gradually expanding to cover the entire coconut belt of the state.

Officials from the state agriculture department have indicated that they will closely monitor implementation, ensuring that interventions such as nurseries, market hubs, and processing facilities meet international best practices while catering to local needs. Coordination with farmer cooperatives and producer companies will be central to achieving maximum impact.

Conclusion

Andhra Pradesh’s proposal for the Integrated Coconut Development and Market Strengthening Programme represents a comprehensive effort to transform the state’s coconut sector. By combining modern market infrastructure, processing capabilities, technology integration, and farmer capacity building, the programme aims to stabilise prices, boost incomes, create employment, and position the state as a national leader in tender coconut and value-added coconut products.

As the state awaits approval of the ₹200-crore central assistance, stakeholders hope that timely support will enable Andhra Pradesh to unlock the full potential of its coconut industry, setting a benchmark for agricultural innovation, rural development, and sustainable growth.