The weathered face of 80-year-old Munaswamy from Vijayapuram in the Nagari assembly segment is a testament to the hardships he faced as a farmer in the dry lands of Rayalaseema. Each wrinkle tells a story of the risks he took amid erratic monsoon seasons and unmet government promises in a region perpetually in search of water. In his youth, he hoped for better conditions but watched in disappointment as his livelihood deteriorated and fellow farmers succumbed to despair.
This may explain why Munaswamy meets potential industrial growth in the area with cautious optimism. “I wish for a future where younger generations don’t have to endure the same hardships. With climate conditions worsening, agriculture is becoming less viable here. We need industries that can provide jobs for our youth,” he reflects. His family was among the few who agreed to the government’s acquisition of part of their land in the Nagari revenue division.
“I hope the younger generation doesn’t have to toil like us. With the climate increasingly becoming hostile, agriculture has lost its appeal here. We need industrial establishments that can employ our young.” MunaswamyElderly farmer
Chronic Water Scarcity
The region of Rayalaseema, encompassing Anantapur, Chittoor, Kadapa, and Kurnool districts, is notorious for its semi-arid climate and persistent water shortages. A senior professor from Dr. YSR Horticultural University’s Anantarajupeta campus, who requested anonymity, explains that the area is devoid of a perennial river due to its rain shadow position relative to the Western Ghats. “It relies heavily on contested water from the Krishna and Penna rivers. Delays in inter-basin water transfer projects and incomplete canal systems like Handri-Neeva and Galeru-Nagari worsen the situation,” he states.
Farmers here cultivate crops like groundnuts, millets, and pulses, as well as horticultural crops like mangoes, which are heavily reliant on unpredictable monsoon rains. Over the years, this dependence has led to severe agrarian crises. Official statistics reveal that approximately 550 farmers in the Anantapur region ended their lives between 2014 and 2018 due to water-induced crop failures.
A panoramic view of the Chennai-Bengaluru Express Way on the Chittoor-Vellore border. | Photo Credit: K Umashanker
The Horticulture Department in Madanapalle highlights the challenges faced by farmers, including unreliable surface water, overexploited groundwater, escalating input costs, and low prices for crops, all of which put immense strain on agriculture in Rayalaseema.
A Spark of Industrial Growth?
Despite these adversities, Rayalaseema is witnessing a significant shift with the advent of projects like the Chennai-Bengaluru Industrial Corridor, the Bengaluru-Chennai Expressway, and the newly approved Kadapa-Bengaluru double line railway project. The four-lane NH-71 connecting Tirupati and Madanapalle has dramatically reduced travel time from four hours to two.
Farmers like 63-year-old Abbaiah Naidu from Piler in Annamayya district, who sacrificed part of his farmland for the NH project, are hopeful that this will usher in industrial development for the district. Many farmers, having given up their land for various infrastructure projects in Chittoor, Annamayya, and Tirupati districts, envision a future filled with agro-based and greenfield industrial units.
Emergence of Youth Entrepreneurship
Disenchanted with the risks of farming, a large number of local youths are pursuing higher education in fields such as engineering and technology, with many relocating to metropolitan areas like Hyderabad, Chennai, and Bengaluru or even abroad.
However, the recent infrastructure developments have reignited interest among the youth in starting Micro, Small, and Medium Enterprises (MSMEs). C. Suri Babu, General Manager of the Department of Industries, noted a surge in proposals for food processing, textiles, bio-energy, dairy development, and hospitality ventures. Many youths are banding together to overcome financial obstacles and gain access to bank loans backed by Detailed Project Reports (DPRs).
Munaswamy shares that his 25-year-old granddaughter, Radhika, living in Australia, aspires to launch a groundnut oil extraction and dairy business.
Suri Babu points out that agro-based MSMEs hold immense potential in rain-shadow districts like Chittoor. For instance, the poultry sector generates an annual revenue of ₹7,000 crore, while the dairy sector rakes in ₹4,000 crore. As companies like Amul, Mother, and Shreeja expand their presence in the district, these figures are expected to grow.
Success stories are emerging, such as that of 48-year-old Vidyasagar from Sankranthipalle in Chittoor district. He founded his MSME, ‘Girish Aqua,’ a mineral water plant, a decade ago. The plant now provides packaged drinking water across Rayalaseema, catering to numerous community and official events. Vidyasagar initially invested ₹15 lakh, and now his business has an annual turnover of ₹2 crore.
“When I started, my goal was to offer purified water to rural communities. The business has since expanded to include pet bottle production,” he recounts.
Suri Babu emphasizes the importance of educating youths, particularly engineering graduates, about entrepreneurship. The Department of Industries conducts outreach programs in rural areas and educational institutions to promote entrepreneurship. When aspiring entrepreneurs submit DPRs for feedback, officials often fine-tune their ideas to meet loan eligibility criteria. Popular proposals so far include chicken processing, dairy farming, and textiles.
Several poultry units have sprung up along the NH between Chittoor and Palamaner. In Kuppam and Palamaner, many youths are starting small dairies, supplying milk to major brands like Heritage, Amul, Shreeja, and Mother.
A revenue officer, who contributed to resolving issues among mango farmers in Chittoor and requested anonymity, noted that mango prices plummeted to ₹6 per kg this season due to a lack of processing units. “The few existing units were reluctant to purchase more fruit because they still had unsold stocks from previous years. The same is true for tomatoes. More processing facilities are essential to address this problem,” he said.
Fisheries: An Unlikely Opportunity
Another sector experiencing growth in Rayalaseema is fisheries and aquaculture. Young individuals from SPSR Nellore district, benefiting from the Pradhan Mantri Matsya Sampada Yojana (PMMSY), are now transporting fish and prawns to Tirupati and various towns in Rayalaseema, as well as to Chennai, Bengaluru, and beyond. One of these is 30-year-old Subramanyam from Nellore.
He sources prawns from aqua farmers in Kavali and Gudur and procures the renowned Korameenu fish from the Godavari districts, mainly Bhimavaram, for distribution in Rayalaseema towns and major cities. Subramanyam launched his business four years ago with an investment of ₹1.7 lakh and has reached a monthly turnover of ₹25 lakh. He currently employs four individuals and plans to venture into exports to Southeast Asian countries by 2026.
To enhance economic prospects in Rayalaseema, the Andhra Pradesh Industrial and Infrastructure Development Corporation (APIIC) is working on establishing industrial parks in various constituencies, and land acquisition is already underway in Nagari, Kuppam, and Palamaner.
A senior revenue official in Puttaparthi, who requested anonymity, believes that an industrial boom will compel governments to implement measures for water supply in arid regions. “This, in turn, would benefit agriculture as well. Just look at how conditions improved in the Sri Sathya Sai district following the establishment of Kia Industries,” the officer remarked.
Challenges Facing MSMEs
A lack of coordination between the Department of Industries and banks often leads to delays in the approval of DPRs. Furthermore, sectors other than dairy and poultry struggle to receive governmental support, according to Gujjala Eswaraiah, a CPI State Secretariat member from Kadapa.
“Political interference heavily impacts the MSME sector. A youth with political connections can enter any field, while those from disadvantaged backgrounds face immense challenges in getting their DPRs approved and securing loans.” Gujjala EswaraiahCPI State Secretariat member, Kadapa
Most aspiring entrepreneurs in the region come from urban centers like Kadapa, Tirupati, and Kurnool, with very few emerging from rural areas. “Political interference in the MSME sector is rampant. Youths with political backing can easily navigate their way into business, while those from less privileged backgrounds find it extremely challenging to have their DPRs approved and loans sanctioned,” he stated. Despite government claims, SC and ST communities continue to lag in the MSME landscape.
Even though the MSME movement began two decades ago, its presence in Rayalaseema is still nascent. “APIIC possesses extensive landholdings in the region, but there’s a lack of seriousness regarding the allocation of land for MSMEs. This poses a significant challenge for entrepreneurs looking to secure land for their ventures and present it to banks for lending purposes,” he explained.
He also noted that residents of Rayalaseema were optimistic about an industrial revolution when the late Chief Minister Y.S. Rajasekhara Reddy laid the foundation stone for a steel plant in Kadapa in 2007, followed by foundation stones laid by subsequent Chief Ministers in 2018 and 2019. Yet, the steel plant has yet to materialize, he lamented. The absence of railway access through core rural areas of Rayalaseema remains another significant barrier to MSME growth in the area.
Suri Babu highlighted that the shortage of suitable labor for MSMEs is a major hurdle, as many skilled workers prefer urban employment for better wages.
As Rayalaseema undergoes an infrastructure transformation, providing adequate support can enable an industrial revolution in the region, with youth leading the charge. By addressing challenges related to funding, political influence, and workforce skills, the government can facilitate a new generation of entrepreneurs who will drive wealth creation and job opportunities in a region long burdened by economic challenges.
Original Source – Full Article
Need help or have questions? Contact Us
