Andhra Pradesh releases Rs 260 crore subsidy to support mango farmers reeling from price crash

The Agriculture Department has urged pulp manufacturers to raise the procurement price from ₹8 to ₹12 per kg to ensure better returns for farmers.

Published Jul 19, 2025 | 12:22 AMUpdated Jul 19, 2025 | 12:22 AM

Different varieties of mangoes.

Synopsis: The Andhra Pradesh government has released ₹260 crore as subsidy to support Totapuri mango farmers hit by the recent price crash, ensuring a minimum procurement price of ₹12 per kg through the Market Intervention Scheme. Pulp companies are expected to pay between ₹8-10 per kg while the state will provide a ₹4 subsidy per kg, covering up to 6.5 lakh tonnes of produce. 

The TDP-led NDA government in Andhra Pradesh has released ₹260 crore to subsidise the procurement of Totapuri mangoes from farmers facing a crisis due to a sharp fall in prices.

According to sources, the funds were released on the instructions of Chief Minister N Chandrababu Naidu. A subsidy of ₹4 per kg will be provided for Totapuri mangoes sold under the Market Intervention Scheme.

The subsidy is expected to cover the sale of 6.5 lakh tonnes of mangoes, with the amount being credited directly to farmers’ bank accounts.

The measure is part of a broader initiative to ensure a minimum procurement price of ₹12 per kg for Totapuri mangoes. While pulp processing companies are contributing ₹8 per kg, the government is providing the remaining ₹4.

Furthermore, the Agriculture Department has urged pulp manufacturers to raise the procurement price from ₹8 to ₹12 per kg to ensure better returns for farmers.

Procurement will continue until the end of August and is expected to provide relief to farmers in Chittoor, Tirupati, and Annamayya districts, where mango cultivation is a key source of livelihood.

Also Read: State Of Play: Mango becomes bone of contention for Karnataka and Andhra Pradesh

Geopolitical factors, oversupply crash prices 

This year, mango prices dropped to a record low of ₹2 per kg in Chittoor, mainly due to oversupply, unseasonal rainfall, and reduced demand from the pulp industry.

Andhra Pradesh produces an estimated 49.85 lakh metric tonnes of mangoes across 3.98 lakh hectares, but many farmers have been unable to recover production costs.

The situation was aggravated by cheaper imports from Karnataka, where mangoes were sold at ₹3–5 per kg. Global trade disruptions, including the Russia–Ukraine conflict and high export duties, have also led to excess pulp stocks.

While the state government has taken a decisive step, its request for central assistance remains pending.

District collectors have been instructed to oversee procurement, verify farmers’ details (including IFSC codes and e-crop registration), and ensure a smooth process. Special counters have been set up in market yards, with officials assuring farmers there will be no cap on procurement.

Agriculture Minister K Atchannaidu, during a recent visit to Chittoor and Tirupati, said the government was committed to procuring all mangoes and urged farmers to adopt modern cultivation techniques and intercropping as safeguards against future losses.

Also Read: How Russia’s war with Ukraine has hit Andhra’s mango growers

Opposition questions timing, demands more support

The release of the subsidy has not been without controversy. The YSR Congress Party (YSRCP) alleged that the government acted only after YS Jagan Mohan Reddy’s visit to the region.

It also claimed that only 67 percent of mangoes had been procured by early July and questioned the absence of a formal Government Order (GO) for the ₹260 crore release.

The Communist Party of India (Marxist) has demanded an additional ₹500 crore in central support and called for measures to break cartels in the mango trade. The party has also pushed for direct subsidies to farmers instead of routing funds through intermediaries.

(Edited by Dese Gowda)

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