Andhra CM seeks ₹200-cr from Centre for coconut project

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

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Andhra CM Seeks ₹200 Cr From Centre for Coconut Project

Amaravati | December 28, 2025
By Vagabond News Desk

Andhra Pradesh Chief Minister N. Chandrababu Naidu has sought ₹200 crore in central assistance for a comprehensive coconut development project, citing the crop’s critical role in rural livelihoods and the state’s agrarian economy.

The demand was raised during discussions with Union government officials, where the Chief Minister outlined a proposal aimed at boosting coconut productivity, improving farmer incomes, and strengthening processing and export infrastructure across key coconut-growing districts.


Focus on Farmers and Value Addition

According to officials, the proposed project includes large-scale rejuvenation of ageing coconut plantations, expansion of drip irrigation, and support for farmer producer organisations (FPOs). A significant portion of the funds would also be directed toward setting up modern processing units for coconut oil, coir, and value-added products.

“The coconut sector has the potential to transform coastal and delta districts if supported with the right infrastructure and technology,” the Chief Minister said, adding that central funding would accelerate implementation.


Strategic Importance for Andhra Pradesh

Andhra Pradesh is among India’s leading coconut-producing states, with thousands of small and marginal farmers dependent on the crop. Officials noted that price volatility, pest attacks, and climate stress have affected yields in recent years, making government intervention crucial.

The proposed scheme aligns with national objectives of crop diversification, agri-processing, and export promotion, the state government argued.


Centre’s Response Awaited

Union officials acknowledged the proposal and said it would be examined under existing agriculture and horticulture support schemes. A decision is expected after technical appraisal and inter-ministerial consultations.

If approved, the project would be implemented in phases over multiple years, with the state contributing its share alongside central funds.


Political and Economic Implications

The funding request comes as the Andhra Pradesh government seeks to revive farm-sector growth and signal its focus on agriculture-led development. Coconut farmers’ groups have welcomed the move, saying targeted investment could stabilise incomes and reduce distress in rural areas.

For now, the state awaits the Centre’s response, with officials expressing hope that the proposal will receive swift approval.