Banana Cluster in Maharashtra

• 23 Mar 2026

Why in News? 

On the occasion of Gudi Padwa, Union Agriculture & Farmers Welfare Minister Shivraj Singh Chouhan announced approval for a ₹200‑crore ‘Banana Cluster’ project in Jalgaon, Maharashtra, aimed at enhancing banana cultivation and strengthening agricultural infrastructure. 

Key Points 

• Objective: The project aims to develop a complete banana value chain including production, processing, storage, and marketing, enhancing both farmer income and export potential. 
• Cluster Infrastructure: Facilities under the cluster include Good Agricultural Practices (GAP), mechanisation, bio-control units, fruit covering, pre-cooling chambers, cold storage, ripening chambers, refrigerated vans, processing units, and export infrastructure. 
• Financial Support: Subsidies for these facilities will be provided through the Mission for Integrated Development of Horticulture (MIDH) and the Agriculture Infrastructure Fund (AIF), ensuring direct benefits to farmers. 
• Recognising that bananas are not covered under MSP for long-term storage, the government is considering alternative mechanisms to compensate farmers if market prices fall below a predetermined cost or model price, under schemes like PM-AASHA (Pradhan Mantri Annadata Aay Sanraksan Abhiyan). 
• Significance: Jalgaon, also known as the ‘Banana City’, plays a pivotal role in India’s horticulture sector and contributes significantly to agricultural development. 

Read More: Mission for Integrated Development of Horticulture (MIDH), Agriculture Infrastructure Fund (AIF), PM-AASHA