Government focuses on food processing, value addition and global markets to increase farmers’ incomes
VIJAYAWADA / ANDHRA PRADESH | August 24–25, 2026
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VIJAYAWADA: Andhra Pradesh Chief Minister N. Chandrababu Naidu has announced a major push to transform agriculture into a more profitable business by promoting food processing, value addition, branding and global marketing of farm produce.
The announcement was made on August 24, 2026, during a programme at Musunuru in Eluru district, where the Chief Minister said farmers and young people should move beyond producing raw agricultural commodities and focus on processing them into higher-value products.
💰 ₹1 Lakh Crore Horticulture Investment Plan
One of the major announcements was a proposed ₹1 lakh crore public-private investment programme to transform Rayalaseema into a global horticulture hub.
The plan is intended to focus on high-value agricultural and horticultural commodities, including chilli, turmeric, maize and aquaculture, with processing and value addition forming an important part of the strategy.
According to the Chief Minister, the programme is expected to be launched in September 2026, with government support combined with private-sector investment.
🌽 Focus on Maize and Popcorn
During the Musunuru programme, Naidu also launched non-GMO hybrid popcorn maize seeds near Nuzividu.
The region is already associated with large-scale popcorn cultivation and processing. According to the report, popcorn is being cultivated across approximately 40,000 acres by around 17,500 local farmers, with produce supplying both domestic and international markets.
The government wants such locally produced agricultural commodities to be processed and marketed under stronger regional brands rather than being sold only as raw produce.
🏭 Food Processing to Increase Farmer Income
Naidu called on farmers and youth to establish small and medium-sized processing units so agricultural produce can generate additional income after harvest.
The focus includes:
- 🌾 Agricultural food processing
- 🥭 Horticultural produce processing
- 🌶️ Chilli and turmeric value addition
- 🌽 Maize and popcorn processing
- 🐟 Aquaculture value addition
- 📦 Packaging and branding
- 🌍 Export-oriented products
- 🚚 Better supply chains and market access
The broader objective is to turn agricultural households into entrepreneurial units and create additional employment opportunities in rural areas.
🌍 Andhra Products to Target Global Markets
The Chief Minister also stressed that Andhra Pradesh’s agricultural products should reach international markets through better processing, packaging, branding and quality standards.
The government plans to establish dedicated retail counters at major railway stations for products such as Andhra Popcorn and Araku Coffee, while also promoting traditional products and other locally produced goods.
💧 Irrigation and River-Linking Plans
Agriculture was also discussed in connection with long-term water security.
Naidu advocated greater use of river-linking infrastructure involving major rivers such as the Godavari, Krishna, Penna, Tungabhadra, Cauvery, Ganga and Mahanadi to improve irrigation security.
He also highlighted the importance of irrigation initiatives for agriculture in Andhra Pradesh.
🌾 What Does This Mean for Krishna District?
Although the ₹1 lakh crore horticulture programme is specifically aimed at developing Rayalaseema, the broader food-processing and agribusiness strategy is relevant to Krishna district because Krishna has a strong agricultural, fisheries and aquaculture economy.
The district’s agricultural economy includes major activities such as paddy cultivation, horticulture and fisheries/aquaculture.
For Krishna farmers and agricultural businesses, increased emphasis on processing, cold chains, storage, packaging, branding and export markets could create opportunities beyond traditional raw-produce sales.
🧑🌾 Government’s Larger Agriculture Vision
The latest announcement reflects a shift from simply increasing agricultural production toward building a farm-to-market value chain.
The government is seeking to increase the value generated from agricultural products by connecting:
Farmer → Processing → Packaging → Branding → Domestic Market → Export Market
This approach could potentially provide farmers with additional revenue opportunities while creating rural employment in food-processing and related businesses.
📰 Latest Update
As of August 25, 2026, the plan is at the announcement/implementation-planning stage. The Rayalaseema horticulture programme is expected to be formally launched in September, while the wider push for agricultural processing and value addition is already being promoted by the state government.