Accelerating India’s High Value Crop Diversification

Introduction

Over the past decade, horticultural production surged from 277.35 million tonnes (2013-14) to 370.74 million tonnes (2024-25). Unlike cereals, these crops generate superior returns per unit of land, fuel agro-processing, and are pivotal for achieving the USD 2 trillion export target by 2030.

Regionally Anchored Strategies

The Union Budget 2026-27 adopts a crop-specific, geographically aligned framework to leverage agro-climatic advantages.

1. Coastal Regions: The Plantation Powerhouse

    • Coconut: India produces 13.97 million tonnes, supporting 30 million livelihoods. Keralam holds the largest area (7.54 lakh ha), while Andhra Pradesh leads in productivity.
    • Cashew: Known as the “Gold Mine of Wasteland” for its resilience, it covers 12.05 lakh ha. India exported cashew worth USD 369.17 million in 2024-25.
    • Cocoa: Primarily grown as an intercrop with coconut and arecanut in Andhra Pradesh and Keralam.

2. North-Eastern Region (NER): The Aromatic Hub

    • Agarwood (Oud): Nearly 90% of India’s 150 million trees are in the NER.
    • Economic Potential: The market in Tripura alone has an annual turnover potential of ₹2,000 crore.
    • Regulatory Support: Export quotas for agarwood chips and oil have been integrated into the DGFT portal to streamline trade.

3. Himalayan & Hilly Regions: Premium Nut Crops

    • Walnuts: Production reached 3.22 lakh tonnes in 2024-25, with J&K dominating cultivation.
    • Almonds: J&K accounts for over 83% of national production.
    • Chilgoza (Pine Nut): Crucial for tribal livelihoods in Kinnaur, Himachal Pradesh.

Institutional Framework

    • Coconut Development Board: Facilitates Coconut FPOs and the new “Coconut Promotion Scheme” to replace aging trees.
    • Directorate of Cashewnut and Cocoa Development (DCCD): Formulates development programs and monitors MIDH schemes from its base in Kochi.
    • Mission for Integrated Development of Horticulture (MIDH): The overarching scheme for area expansion, nursery modernization, and training.

Challenges

    • Value Addition Gaps: The Hindu reports that while raw production is high, India lacks sufficient advanced processing units for “application-oriented” products like virgin coconut oil and cocoa butter.
    • Climate Vulnerability: ORF notes that coastal cashew and coconut plantations are increasingly susceptible to cyclones and rising sea levels, necessitating climate-resilient saplings.
    • Logistics in Hilly Areas: PRS Legislative highlights that high-value nuts from the Himalayas face steep transportation costs and poor cold-chain connectivity to southern export hubs.

Way Forward

    • High-Density Cultivation: Implementing the Budget 2026-27 proposal to rejuvenate low-yielding orchards for walnuts and almonds.
    • Self-Reliance (Atmanirbharta): Strengthening the dedicated program for Indian Cashew and Cocoa to reduce import dependence on raw materials.
    • Branding & Marketing: Positioning “Indian Agarwood” and “Himalayan Nuts” as premium global brands to capture high-end markets in the UAE, USA, and EU.
    • Geospatial Mapping: Expanding area-expansion plans in the NER using geospatial tools for sustainable agarwood trade.

Conclusion

Agriculture in Viksit Bharat is transitioning from traditional staples to a high-value horticultural economy by aligning crop-specific strategies with local agro-climatic strengths from coastal plantations to Himalayan nuts.

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