Banana growers in India are facing lower returns in Andhra Pradesh, with farmgate prices declining while production costs remain elevated.
YS Sharmila Reddy, president of the Andhra Pradesh Congress Committee, raised the issue in YSR Kadapa district, submitting a memorandum to local authorities. She stated that banana prices have declined from 26,000 rupees per ton (US$310 per ton) to around 4,000 rupees per ton (US$48 per ton).
Reddy said cultivation requires an investment of 200,000 to 300,000 rupees per acre (US$2,400 to US$3,600 per acre), with average yields of around 30 tons. At current price levels, producers are unable to recover production costs. She also cited the absence of cold storage infrastructure, which limits storage options and results in immediate sales.
Concerns were also raised regarding crop insurance, with pending dues estimated at 170 crore rupees (US$20.4 million). Reddy stated that support measures have not been disbursed to growers.
She also referred to price stabilisation initiatives. A previous administration announced a fund of 3,000 crore rupees (US$360 million), while the current government allocated 500 crore rupees (US$60 million). According to Reddy, these measures have not translated into financial support at the farm level.
Reddy called for intervention measures, including price support mechanisms, enforcement actions related to trader activity, access to planting material, and the release of stabilisation funds to compensate growers.
Source: The News Mill
