Centre Steps In to Rescue Andhra's Totapuri Mango Sector With MIS Price Support and ICAR Panel
A bumper harvest, weakened Gulf demand, and unsold pulp inventories have driven Totapuri mango prices to crisis lows — prompting the Union Government to activate price deficiency payments and form a high-level ICAR panel.
The short answer
The Union Government has approved Price Deficiency Payment under the Market Intervention Scheme (MIS) for Andhra Pradesh's Totapuri mango growers for the 2026-27 marketing season, setting a Market Intervention Price of ₹1,747 per quintal. The scheme will cover up to 2.16 lakh metric tonnes — 25% of the estimated nine lakh tonne production — with compensation capped at 25% of the MIP. Separately, the Centre has constituted an ICAR-headed expert panel to examine structural problems in the sector, which generates an estimated annual turnover of over ₹4,000 crore.
The crisis
Bumper Harvests, Crashing Prices, and a Stalled Export Market
Two consecutive seasons of favourable weather — 2024 and 2025 — delivered bumper Totapuri mango crops across Andhra Pradesh, but the processing industry was ill-equipped to absorb the surge. Pulp manufacturers were already sitting on unsold stocks from earlier seasons when procurement demand from the Gulf region — the destination for roughly 80% of Chittoor's mango pulp — began weakening from February, a downturn attributed to the ongoing West Asia crisis that has yet to reverse.
The result was a classic supply-demand mismatch: procurement centres were flooded with fruit, and farm-gate prices tumbled sharply. Unlike table fruit varieties such as Banganapalli or Alphonso, Totapuri has virtually no retail market — it is cultivated almost exclusively for industrial pulp extraction. With cold storage infrastructure described as inadequate and the fruit being highly perishable, farmers found themselves with no leverage and were pushed into distress sales.
"The mismatch between supply and demand flooded procurement centres, causing prices to tumble," noted a pulp unit manager with over two dozen seasons of experience in Chittoor.
The intervention
MIS Price Deficiency Payment Activated for 2026-27 Season
In response to the crisis, the Union Ministry of Agriculture and Farmers Welfare has approved the Andhra Pradesh government's proposal to implement the Price Deficiency Payment (PDP) under the Market Intervention Scheme (MIS) for the 2026-27 marketing season.
Key parameters of the approval:
- Market Intervention Price (MIP): ₹1,747 per quintal
- Compensation cap: 25% of the MIP, paid as the price difference to eligible growers
- Coverage: Up to 2.16 lakh metric tonnes, representing 25% of the estimated production of around nine lakh tonnes
- Duration: The scheme will remain operative for one month from the date of the first procurement transaction
Simultaneously, the Centre has constituted a high-level expert panel under the Indian Council of Agricultural Research (ICAR) to examine the deeper structural challenges confronting the Totapuri mango industry — including processing capacity, export market dependency, and supply chain vulnerabilities. Together, the two measures represent what the government is positioning as a twin-track response: immediate relief now, structural reform over time.
We do not need subsidies. What we need is a fair price that covers our production costs.
The sector
Chittoor at the Heart of India's Mango Pulp Economy
Andhra Pradesh is India's largest mango-producing state, with cultivation spread across nearly five lakh hectares and annual production of close to 40 lakh tonnes in a normal year. Totapuri, the workhorse of India's mango pulp industry, is prized for its high pulp recovery rate, low fibre content, and suitability for mechanised extraction — making it indispensable to manufacturers of fruit beverages, juices, bakery products, yoghurt, baby food, and confectionery.
The erstwhile Chittoor district — now split across Tirupati, Chittoor, and Annamayya districts — accounts for more than 1.2 lakh hectares under Totapuri cultivation. The district hosts around 47 pulp processing units that collectively procure nearly seven lakh tonnes of Totapuri mangoes and produce approximately four lakh tonnes of pulp each season. Major export markets include West Asia, Europe, the United States, and Southeast Asia.
The entire ecosystem — from orchards and factories to transport networks and seasonal trade — supports the livelihoods of more than 30,000 families, underscoring why price collapses in this single variety carry outsized economic consequences for the region.
Farmer voices
Growers Demand Cost-Covering Prices, Not Subsidies
Across the mango belts, the sentiment among growers is consistent: heavy upfront investment in irrigation, fertilisers, labour, and orchard upkeep makes a price crash catastrophic. Because Totapuri cannot be held back from the market — the fruit is perishable, cold chain options are limited, and it finds no buyer as a table variety — farmers have no fallback when pulp processors cut procurement.
Kothur Babu, President of the Chittoor District Mango Producers Association, captured the structural trap: "We depend almost entirely on pulp factories. We have no alternatives when processors reduce procurement."
For Janardhan Thota, a grower from Irala mandal near Chittoor, the ask is straightforward: "We do not need subsidies. What we need is a fair price that covers our production costs."
This sentiment — productive investment rendered worthless by a single-buyer dependency — is precisely what the ICAR panel will need to address if the Totapuri sector is to build any lasting resilience against demand shocks.
The infrastructure gap
Industry Pushes for DGFT Office and ICD in Chittoor to Sharpen Export Edge
Beyond immediate price support, industry stakeholders have urged the Centre to establish two pieces of critical trade infrastructure in Chittoor district: a Directorate General of Foreign Trade (DGFT) office and an Inland Container Depot (ICD).
Kattamanchi Govardhan Bobby, Chairman (South Zone) of the All India Food Processors' Association (AFPA), explained the rationale: a DGFT office would streamline export documentation and speed up regulatory clearances, while an ICD would allow export consignments to be handled locally rather than routed through distant container terminals — directly reducing logistics costs.
The combined infrastructure, if sanctioned, is expected to improve export efficiency, lower transaction costs, and strengthen the competitiveness of Chittoor's pulp exports in global markets. Given that nearly 80% of the district's mango pulp output is already exported, reducing the cost and complexity of that export pathway could meaningfully improve price realisation at the farm level — addressing the root cause of vulnerability rather than just its symptoms.
Why it matters
With over 30,000 livelihoods — spanning farmers, factory workers, transporters, and traders — directly or indirectly tied to Andhra's mango economy, this intervention signals that price volatility in processing-grade fruit varieties is now firmly on the Centre's policy radar. The combination of short-term price support through MIS and a structural review by ICAR could set a template for other states grappling with similar gluts in industrial-use horticulture crops. Stakeholders and policymakers should watch whether the ICAR panel's findings translate into lasting infrastructure upgrades — particularly cold storage, a proposed DGFT office, and an Inland Container Depot in Chittoor — that reduce farmers' dependence on distress sales.
Frequently asked
- What is the Market Intervention Price fixed for Totapuri mangoes under the MIS?
- The Union Government has fixed the Market Intervention Price (MIP) at ₹1,747 per quintal. Growers will receive compensation for the price difference between the MIP and actual market prices, capped at 25% of the MIP.
- How much Totapuri mango production will the MIS scheme cover?
- The scheme will cover up to 2.16 lakh metric tonnes, which represents 25% of the estimated total Totapuri mango production of around nine lakh tonnes for the season. It will remain in force for one month from the date of the first procurement transaction.
- Why did Totapuri mango prices crash so sharply in recent seasons?
- Two consecutive bumper harvests in 2024 and 2025, combined with weakened export demand from the Gulf region due to the ongoing West Asia crisis, left pulp processors with unsold inventories. Since Totapuri has no market as a table fruit and cold storage infrastructure is inadequate, farmers were forced into distress sales when processors reduced procurement.
- What infrastructure has the industry requested from the Centre to improve Chittoor's export competitiveness?
- Industry stakeholders, led by AFPA's South Zone Chairman Kattamanchi Govardhan Bobby, have urged the Centre to establish a Directorate General of Foreign Trade (DGFT) office and an Inland Container Depot (ICD) in Chittoor district. These would simplify export documentation and reduce logistics costs by enabling local handling of export consignments.
Source
This report summarises and analyses coverage from The Hindu — Agriculture. The analysis and India context are IndianAgri's own.