Andhra CM urges Centre to protect interests of aquaculture and tobacco farmers
Amaravati, July 20
Andhra Pradesh Chief Minister N. Chandrababu Naidu on Monday appealed to the Centre to protect the interests of aquaculture and tobacco farmers.
The Chief Minister has written separate letters to the Central ministers.
In a letter to the Union Minister of Fisheries, Animal Husbandry and Dairy Development, Rajiv Ranjan Singh, the Chief Minister urged the Centre to permit shrimp feed manufacturers to import genetically modified (GM) soybean meal to support the aquaculture sector.
He explained that the sharp increase in soybean meal prices, the primary raw material used in shrimp feed, has significantly raised feed production costs, placing severe financial stress on shrimp farmers. He requested the Centre to allow soybean meal imports to address the domestic shortage and stabilise prices.
The CM recalled that similar import permissions had been granted to shrimp feed manufacturers on a limited scale in 2021.
He noted that rising shrimp production and exports from Ecuador have intensified competition in international markets, making it increasingly difficult for Indian exporters in key destinations such as the United States, China and Europe.
In another letter, the Chief Minister requested the Union Minister of Fisheries for the establishment of a regional office of the National Fisheries Development Board (NFDB) in Amaravati to strengthen support for Andhra Pradesh's aquaculture sector.
He recalled that during the Seafood Exports Workshop held in Visakhapatnam on June 5 this year, the Union Minister had assured the establishment of an NFDB regional office in Amaravati. The state government has already allocated 7.89 acres of government land at Nekkallu village for the regional office, a training centre, a fisheries park and a public aquarium. He said the facility would emerge as a major hub for the development of the Blue Economy.
The Chief Minister also wrote to Union Minister for Commerce and Industry Piyush Goyal, seeking immediate measures to protect Andhra Pradesh's aquaculture sector.
He pointed out that increased shrimp exports from Ecuador to the United States, China and Europe have led to a sharp decline in global shrimp prices.
He urged the Centre to regulate the domestic availability of fish meal, an important ingredient in shrimp feed. The CM noted that fish meal exports currently receive a 5 per cent export incentive, forcing domestic feed manufacturers to purchase the commodity at higher prices. He requested that the Directorate General of Foreign Trade (DGFT) regulate exports and ensure that domestic requirements are met before permitting them.
He also reiterated the request to allow imports of GM soybean meal.
The Chief Minister requested the Union Commerce Minister to provide export incentives for FCV tobacco from Andhra Pradesh. Competing countries such as Zimbabwe and Tanzania provide subsidies and duty concessions to their exporters, whereas Indian exporters receive no comparable support.
Although agricultural commodities such as tea, coffee and spices were brought under the RoDTEP scheme in August 2021, unmanufactured tobacco (HS Code 2401) was excluded. He urged the Centre to immediately extend RoDTEP benefits to unmanufactured tobacco.
In a separate letter to Union Finance Minister Nirmala Sitharaman, the Chief Minister sought several financial measures to strengthen the aquaculture sector. He requested a reduction in GST on aquaculture aerators from 18 per cent to 5 per cent.
Referring to the India-US trade agreement, he said that although import duties on aquaculture products had been reduced to 10 per cent, legal uncertainty surrounding tariffs still persists and sought the Finance Ministry's intervention.
The Chief Minister also requested a one-time top-up of Rs 5 lakh under the Kisan Credit Card scheme for aquaculture farmers.
He also sought creation of a Rs 100 crore corpus fund through the NFDB for domestic marketing.
The CM further requested the reduction of GST on unmanufactured tobacco (HSN Code 2401) from 40 per cent to 28 per cent, stating that such a decision would provide major relief to lakhs of tobacco farmers, dealers and exporters in Andhra Pradesh.
— IANS
Reader Comments
Valid points by CM but why is tobacco always coming up for special treatment? It causes health issues. Focus should be on aquaculture which is more sustainable. Also, GM soybean import - are we sure about its environmental impact? Need proper studies before allowing. The Kisan Credit Card top-up for aquaculture is welcome though.
Naidu's letter writing is good PR but ground reality is different. Ecuador flooding USA with shrimp is real problem - we need trade diplomacy not just letters. NFDB office in Amaravati? Been hearing this for months. At least land allocation is done. But 5% export incentive on fishmeal hurting domestic feed manufacturers? That's a genuine issue Centre must fix ASAP.
As someone from coastal Andhra, I appreciate this. Shrimp farming sustains thousands of families here. GM soybean meal import will reduce feed cost by 20-30% - that's huge relief. But why is Centre dragging feet? 2021 permission was limited, now we need full allowance. And yes, NFDB regional office in Amaravati will create great opportunities for blue economy! 🌊
Mixed feelings. Tobacco farmers need support but GST cut from 40% to 28% still makes it expensive. Why not promote alternative crops? Aquaculture demands are more reasonable - especially the Kisan Credit Card top-up and corpus fund for domestic marketing. But Centre should link support to sustainable fishing practices, not just exports. Good efforts though.
Kisan Credit Card top-up of Rs 5 lakh for aquaculture farmers is
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