AP Unveils Rs 1 Lakh Crore Plan to Transform Rayalaseema Horticulture

Andhra Pradesh is set to launch an ambitious Global Horticulture Hub–Rayalaseema Rising initiative aimed at transforming Rayalaseema, once widely associated with drought, into a major horticulture production and export centre. Chief Minister N Chandrababu Naidu, Union Finance Minister Nirmala Sitharaman and Deputy Chief Minister Pawan Kalyan are scheduled to launch the project in Madanapalle. With a proposed investment of nearly Rs 1 lakh crore, the three-phase programme seeks to expand cultivation, strengthen irrigation and develop an integrated farm-to-market ecosystem.

Under the Integrated Horticulture Development Plan, the state government will invest Rs 40,352 crore, while around Rs 60,000 crore is expected from the private sector. Of the government allocation, Rs 20,884 crore will be spent on irrigation, around Rs 15,000 crore on horticulture development and Rs 4,562 crore on roads.

The project will cover 10 districts, 303 mandals, 5,869 villages and 201 clusters across Anantapur, Annamayya, Chittoor, Kurnool, Nandyal, Sri Sathya Sai, Tirupati, Kadapa, Prakasam and Markapuram. The programme will be implemented in three phases from 2026 to 2029, with the clusters developed as centres for horticulture production, processing and marketing.

The government plans to increase horticulture cultivation from the existing 8.41 lakh hectares to 14.41 lakh hectares, bringing an additional six lakh hectares under cultivation. Production is targeted to rise from 222 lakh metric tonnes to 435 lakh metric tonnes. The initiative is expected to directly benefit around 9.6 lakh farmers.

Water security is a major component of the programme. Irrigation projects will create an additional ayacut covering nine lakh acres, while facilities across another 4.3 lakh acres of existing ayacut will be stabilised. Drip irrigation, rural roads, transportation and logistics infrastructure will also be strengthened.

The government plans to establish an end-to-end value chain covering harvesting, grading, sorting, packaging, cold storage, processing, branding and marketing. Private investment will be encouraged in food-processing and export infrastructure. Mango, banana, tomato, pomegranate, dragon fruit, avocado and berries are among the high-value crops identified for priority development.

The government expects the programme to generate around Rs 81,000 crore in additional GVA from the third year and create employment opportunities for nearly 19.7 lakh people. It also aims to improve the incomes and living standards of farmers.

The state has cited Anantapur’s banana exports as an example of the cluster-based model, with quality standards, logistics and exporter participation helping connect farmers to overseas markets.

As part of the initiative, the government also aims to develop Rayalaseema as a major ‘Fruit Bowl’ under the broader Rayalaseema Rising programme. Alongside the horticulture hub, the leaders will lay the foundation stone for the proposed Indian School of Agriculture (ISA) in Madanapalle.

Modelled on the lines of the Indian School of Business, the ISA will focus on digital agriculture, precision farming, smart irrigation, crop monitoring, scientific research and market intelligence. Reliance Industries Limited has expressed interest in partnering with the state government in establishing and operating the institution.

The government said Naidu has been reviewing the project for the past six months through consultations with agriculture, horticulture, finance and irrigation officials, while also engaging with the Centre to advance the initiative.