The Union Budget 2025’s announcement to upgrade air cargo infrastructure, especially for high-value perishable goods like horticulture and seafood, marks a pivotal moment for Andhra Pradesh’s export landscape. This strategic move is poised to significantly enhance the state’s export capabilities, particularly benefiting regions like Visakhapatnam (Vizag) and other key airports.
For years, exporters from North Andhra Pradesh have advocated for advanced multi-temperature air cargo facilities at Visakhapatnam International Airport. The absence of such infrastructure has compelled exporters to rely on road transport to Hyderabad, increasing costs and causing delays. This logistical challenge has hindered the timely export of perishable commodities, including seafood, pharmaceuticals, mangoes, pickles, and flowers.
Andhra Pradesh stands as India’s largest seafood exporter, generating approximately ₹20,000 crore annually. The state also leads in horticulture, ranking first in the production of chillies, cocoa, lime, oil palm, papaya, and tomatoes, and second in cashew, mango, and sweet orange production. Despite this robust production, the lack of adequate air cargo facilities has limited the state’s export potential.
Recognizing this, representatives from the Andhra Pradesh Air Travellers Association (APATA), including O. Naresh Kumar, K. Kumar Raja, and D.S. Varma, engaged with Finance Minister Nirmala Sitharaman on March 6. They highlighted the immense potential to boost cargo exports from various state airports and sought support for infrastructure enhancements tailored to each airport’s strengths.
In response, Minister Sitharaman indicated that the central government would consider proposals accompanied by detailed project reports (DPRs) from the state. Subsequently, APATA appealed to Chief Minister N.
Chandrababu Naidu to direct the preparation of DPRs for developing air cargo infrastructure at airports in Vijayawada, Rajahmundry, Tirupati, and the upcoming Bhogapuram International Airport near Visakhapatnam. They also urged the Chief Minister to liaise with the Ministries of Civil Aviation and Finance to expedite approvals and implementation.
The proposed infrastructure upgrades aim to establish multi-temperature controlled cold storage facilities, ensuring the preservation and quality of perishable goods during transit. This development is expected to reduce transportation costs, minimize delays, and enhance the competitiveness of Andhra Pradesh’s exports in international markets.
Moreover, improved air cargo facilities could attract more exporters to utilize regional airports, fostering economic growth and creating employment opportunities within the state. As global demand for fresh and high-quality produce rises, Andhra Pradesh is well-positioned to meet these needs, provided the necessary infrastructure is in place.
The Union Budget 2025’s focus on air cargo infrastructure presents a significant opportunity for Andhra Pradesh to bolster its export sector. With collaborative efforts between state and central governments, the state can overcome existing logistical challenges, unlocking its full export potential and contributing to India’s economic growth.
