How Chandrababu Naidu Fixed The Banana Price Crisis

Banana farmers in Rayalaseema went through a tough phase when prices crashed badly. Just a month ago, banana rates fell to very low levels. Farmers were forced to sell bananas for as little as Rs 8 – 10 per kilo, while low quality fruit dropped to just Rs 2 per kilo. With no demand and heavy supply from states like Maharashtra and Uttar Pradesh, Rayalaseema farmers were left worried.

Seeing the situation, CM Chandrababu Naidu stepped in. He asked the marketing department to act immediately and find a solution. As per his instructions, officials travelled to North India and held talks with traders there. These discussions proved useful, and northern traders agreed to buy bananas from Andhra Pradesh.

From the second week of December, banana exports from Rayalaseema to northern states began. Slowly, the impact started showing in the markets. In Pulivendula market, banana prices have now risen sharply. Good quality bananas are selling between 16,000 and 17,000 rupees per tonne. Even lower quality bananas are fetching close to Rs 10,000 rupees per tonne.

Andhra Pradesh has more than three lakh acres under banana cultivation, with an estimated production of 87 lakh tonnes. While most of the produce is consumed within the state, the government has set a target to export 2 lakh tonnes. So far, after the price fall in November, around 70,000 tonnes have already been purchased.

Marketing officials believe prices may increase further in the coming days. As a result, banana farmers are finally getting fair prices and much needed relief.