Andhra CM seeks ₹200-cr from Centre for coconut project
Andhra Pradesh chief minister N Chandrababu Naidu has asked for central assistance of ₹200 crore to roll out a coconut development programme
Andhra Pradesh chief minister N Chandrababu Naidu has written to the central government seeking financial assistance of ₹200 crore to roll out an Integrated Coconut Development and Market Strengthening Programme in the southern state.
According to people familiar with the matter, the programme will be aimed at stabilising prices and boosting farmers’ incomes in one of India’s most productive coconut belts.
In a letter to Union agriculture minister Shivraj Singh Chouhan on December 16, Naidu stated that Andhra Pradesh ranks fourth nationally in coconut cultivation, with 108,000 hectares under the crop and an output of 1,735 million nuts. The state also leads in productivity at around 16,000 nuts per hectare, he noted.
The CM, in his letter, stressed that despite these advantages, coconut growers face volatile conditions and often low prices due to the absence of organised tender coconut markets, inadequate processing capacity, climate-related losses and a rising incidence of pests and diseases.
“To address these constraints, the proposed ₹200-crore programme focuses on modernising market access and value addition. Key measures include setting up modern tender coconut market hubs in major production clusters, modelled on Karnataka’s Maddur market; establishing an integrated coconut processing park to produce high-value items such as virgin coconut oil, desiccated coconut, packaged tender coconut water and coir products; and expanding nurseries to ensure the availability of quality, climate-resilient planting material, including the Niu Leka Dwarf variety,” the letter said.
The plan also proposes AI-based advisories, drone-led monitoring and spraying, digital market-access platforms, and strengthened pest and disease management alongside farmer training.
According to the proposal, these interventions could lift farm-gate prices from ₹11–15 per nut to ₹35–40, cut climate and pest-related losses by 20–25%, generate about 15,000 rural jobs and position Andhra Pradesh as a national hub for tender coconut and value-added coconut products.
Naidu also urged the Centre to extend support under an appropriate scheme, citing alignment with national priorities such as doubling farmers’ income, Atmanirbhar Bharat, export promotion and rural employment.
Earlier, IT and industries minister Nara Lokesh also raised the challenges faced by coconut farmers in the state, in a meeting with Chouhan in New Delhi on December 2.
