Value Chain Integration in Horticulture and Allied Sectors: Pathways to Farmer Prosperity in Telangana

Author(s): Dr. P. Krishna Murthy

Publication #: 2611006

Date of Publication: 07.11.2026

Country: India

Pages: 1-17

Published In: Volume 12 Issue 6 November-2026

Abstract

Horticulture is a small land use area in Telangana, but contributes an unusual amount of agricultural production, and thus is a strategic avenue to improved farm incomes. This paper reviews the concept of value chain integration, which involves coordinating input supply, production, aggregation, post-harvest handling and processing, and marketing, to turn that output into farmer prosperity. The study gives a baseline profile of the sector based on secondary information from the State and National data using primary evidence till October 2026, identifies gaps stage-wise, and examines three commodity pathways: oil palm, turmeric and spices, and mango and vegetables. Horticulture reportedly has a 7 percent share of the agricultural land and 34 percent share of the gross value of output, but Telangana has a significant dependency on vegetables from other states and limited cold-chain/processing facilities and capacities that can be directly attributed to smallholders. Oil palm demonstrates the effectiveness of institutional and collective marketing arrangements, and mill-led procurement and assured pricing to further integrate. Oil palm demonstrates the effectiveness of assured pricing by milling companies and mill-led procurement, and institutional and collective marketing arrangements in turmeric and mango. The paper introduces a four-pillar integration model, based on farmer producer organisations, post-harvest infrastructure, processing clusters and market risk institutions, and an illustrative loss-reduction scenario. Policy implications and a research programme are outlined.

Keywords: value chain integration, horticulture, farmer producer organisations, post-harvest management, oil palm, Telangana and farmer income.

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