A ₹200-crore ‘Banana Cluster’: A Major Step Towards Transforming The Agriculture Sector
March 2026: In a significant push to modernise India’s horticulture sector, the Centre has approved a ₹200-crore “Banana Cluster” project in Maharashtra’s Jalgaon district, a region widely known as the country’s “banana hub.” The initiative, announced by Union Agriculture Minister Shivraj Singh Chouhan, is being seen as a transformative step aimed at boosting farmer incomes, strengthening supply chains, and enhancing export potential.
The cluster will focus on creating an integrated ecosystem for banana cultivation, covering everything from production to post-harvest management. Key components include the promotion of Good Agricultural Practices (GAP), mechanisation, bio-control methods, and fruit protection techniques. The project will also establish essential infrastructure such as pre-cooling units, cold storage facilities, ripening chambers, refrigerated transport, and processing units.
Importantly, the initiative is backed by government schemes like the Mission for Integrated Development of Horticulture (MIDH) and the Agriculture Infrastructure Fund (AIF), ensuring financial support and subsidies for farmers and agri-entrepreneurs.
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The move comes amid concerns over price disparities, where farmers often receive low returns while consumers pay significantly higher prices. The government is exploring mechanisms to bridge this gap and ensure fair compensation, especially since crops like bananas are not covered under traditional MSP procurement systems.
Experts believe the banana cluster will promote value addition, reduce post-harvest losses, and create new opportunities in processing and exports. By strengthening infrastructure and market linkages, the project is expected to enhance the global competitiveness of Indian bananas while making the agriculture sector more resilient and profitable for farmers.
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