*Agriculture in severe crisis, rural economy crumbling, budget figures mask ground reality*

Tadepalli, Feb 22: YSRCP General Secretary (Agriculture & Farmers’ Welfare) MVS Nagi Reddy stated that agriculture in Andhra Pradesh is in a deep crisis and that the collapsing rural economy is clearly reflected in falling tax revenues, despite the government presenting inflated projections in the Budget. Addressing the media at the YSRCP Central Office, he said the state, which is heavily dependent on agriculture, is witnessing economic regression due to declining farm incomes, reduced procurement support, and marketing failures. He pointed out that in the 2025–26 Budget Estimates, revenue receipts were projected at Rs. 2,17,976.53 crore but were revised down to Rs. 1,96,903.53 crore, a shortfall of over Rs. 21,000 crore (–9.66%) within nine months. Yet the government has now projected a jump to Rs. 2,34,140.14 crore, an unrealistic 18.91% increase. Similarly, state tax revenues were reduced from Rs. 1,28,126 crore to Rs. 1,11,865 crore (–12.69%), but the new Budget projects a steep 22.75% rise to Rs. 1,37,320 crore, exposing what he termed as “cooked-up figures.”

Nagi Reddy said that when farmers, tenant farmers, and agricultural labourers earn and spend, state revenues grow, but the current decline in Minimum Support Prices, falling yields, and reduced cultivation are shrinking rural incomes. While borrowings continue aggressively, Rs. 80,456 crore projected and Rs. 79,456 crore already borrowed in nine months, real income generation is falling. Citing data from the Union Agriculture Ministry’s Unified Portal for Agricultural Statistics, he said that although paddy cultivation increased from 13.97 lakh hectares in 2024–25 to 15.59 lakh hectares in 2025–26 Kharif, production rose marginally from 78.28 lakh tonnes to only 78.5 lakh tonnes, despite higher acreage. This indicates declining productivity even as fertiliser prices increased and farmers were forced to buy urea in the black market.

He stated that the weakening of Rythu Bharosa Kendras has revived middlemen dominance, with millers dictating procurement timelines and farmers not receiving transport and handling payments directly as earlier. Cotton farmers cultivating 4.56 lakh hectares suffered heavy losses due to Cyclone Monda, with yields falling to 4–5 quintals per acre and market prices crashing to Rs. 5,000–Rs. 6,000 against an MSP of Rs. 8,110. Groundnut cultivation fell drastically from an expected 5.72 lakh hectares to just 2.08 lakh hectares (42%), affecting employment and rural incomes, particularly in Anantapur, Sri Sathya Sai, Kadapa, and Chittoor districts. Farmers were forced to sell maize at Rs. 1,400–Rs. 1,800 against an MSP of Rs. 2,400, and pulses such as black gram and green gram faced similar distress. For Rabi, chickpea output is estimated at around 5 lakh tonnes, but NAFED procurement permission is limited to only 94,500 tonnes against an MSP of Rs. 5,875, with market prices hovering around Rs. 5,000, risking further farmer losses unless procurement is expanded.

He said Andhra Pradesh has slipped to the tenth position nationally in paddy procurement while states like Uttar Pradesh, Punjab, West Bengal, Madhya Pradesh, and Telangana lead. Telangana has incentivised farmers with a Rs. 500 per quintal bonus, while Andhra Pradesh offers no such support and even discourages paddy cultivation. Nagi Reddy asserted that Rayalaseema became a horticulture hub due to the initiatives of Y.S. Rajasekhara Reddy and Y.S. Jagan Mohan Reddy, including free power, waiver of electricity arrears, and nine hours of daytime power supply. He argued that the present horticulture distress is not due to lack of production but due to failure in marketing support. He concluded that rural stagnation is evident from stagnant land prices and weak local business activity over the last 20 months, and demanded that the government urgently focus on resolving the agricultural crisis before irreversible damage is done to the rural economy.