Andhra Pradesh Chief Minister N. Chandrababu Naidu and Union Finance Minister Nirmala Sitharaman on Friday laid the foundation for a proposed Rs 1 lakh-crore Rayalaseema horticulture hub at Madanapalle in Annamayya district, alongside the foundation stone for the Indian School of Agriculture (ISA). The projects are intended to expand fruit cultivation, improve farm technology and build market-linked agricultural infrastructure across 10 districts.
The horticulture hub will be implemented in three phases, with the state government estimating that Rs 40,352 crore will come from the TDP-led NDA government. The remaining Rs 60,000 crore is expected to be mobilised from private-sector investment. The planned coverage includes Anantapur, Annamayya, Chittoor, Kurnool, Nandyal, Sri Sathya Sai, Tirupati, Kadapa, Prakasam and Markapuram districts.
According to Naidu, the initiative will operate through 201 clusters spread across 303 mandals and 5,869 villages. The government plans to expand the existing horticulture cultivation area from 8.41 lakh hectares by an additional six lakh hectares, taking the total to 14.41 lakh hectares. Horticultural production is targeted to rise from the current 222 lakh metric tonnes to 435 lakh metric tonnes.
The project is expected to directly benefit 9.6 lakh farmers, while the chief minister said 10 lakh farmers and 49 lakh families could earn a livelihood through the hub. Naidu said the region would focus on producing 20 types of fruit, including apples, avocados and kiwis. He described the drought-prone Rayalaseema region as having the potential to become a major fruit-producing area.
The foundation for the ISA was also laid at the event. The institution is being developed with support from Reliance Industries Ltd and is modelled on the Indian School of Business. It will focus on modern technology, scientific research, digital agriculture, precision farming, crop monitoring, smart irrigation and market intelligence. The school is also expected to provide technology-driven guidance to farmers and develop solutions for agricultural challenges.
Naidu asked Reliance Industries to support export-oriented and market-linked processing for produce from Rayalaseema, in addition to helping develop agricultural scientists through the ISA. The proposed processing and market linkages would connect the expansion of cultivation with storage, value addition and access to domestic and international buyers, although the government has not yet announced detailed project-level timelines for these facilities.
Speaking at the public meeting, Sitharaman referred to central agricultural schemes, including the Kisan Samman Nidhi, Kisan Credit Card, crop insurance and the Gobardhan scheme. She also said the Centre had maintained the price of urea at about Rs 300 per sack for farmers through subsidy support, and highlighted seed varieties intended to withstand heat and water shortages.
Naidu also raised the issue of water availability in the region and said Andhra Pradesh needed stronger inter-state water connectivity. He proposed prioritising the linking of the Godavari and Cauvery rivers before pursuing a broader Ganga-Cauvery link, arguing that such a system could address water disputes involving southern states. The horticulture hub’s implementation details, including the phase-wise schedule, private investment commitments and supporting infrastructure, are expected to determine how the announced expansion progresses.
