Amaravati, July 21: Andhra Pradesh Chief Minister N. Chandrababu Naidu has urged the central government to protect the interests of aquaculture and tobacco farmers. He has sent separate letters to various central ministers regarding this matter.
In a letter to the Minister of Fisheries, Animal Husbandry, and Dairy Development, Rajiv Ranjan Singh, the Chief Minister requested permission for companies producing shrimp feed to import genetically modified (GM) soybean meal to support the aquaculture sector. He highlighted that the significant rise in soybean meal prices, a key raw material for shrimp feed, has drastically increased production costs, placing a heavy financial burden on shrimp farmers. He urged the central government to allow imports to meet domestic shortages and stabilize prices.
The Chief Minister recalled that in 2021, shrimp feed companies were granted limited import permissions. He noted that increased shrimp production and exports from Ecuador have intensified competition in international markets, making it challenging for Indian exporters in major markets like the USA, China, and Europe.
In another letter, the Chief Minister requested the establishment of a regional office of the National Fisheries Development Board (NFDB) in Amaravati to further strengthen the aquaculture sector in Andhra Pradesh. He reminded that during a seafood exports workshop held on June 5 in Visakhapatnam, the central minister assured the establishment of this office. The state government has already allocated 7.89 acres of government land in Nekklu village for the regional office, training center, fisheries park, and public aquarium, which he stated would serve as a key center for developing the ‘Blue Economy.’
Additionally, the Chief Minister wrote to the Union Minister of Commerce and Industry, Piyush Goyal, urging immediate action to safeguard the aquaculture sector in Andhra Pradesh. He pointed out that due to increased shrimp exports from Ecuador to the USA, China, and Europe, global shrimp prices have plummeted.
He requested the central government to regulate the domestic availability of fish meal, a crucial component of shrimp feed. Currently, fish meal exports receive a 5% export incentive, forcing domestic feed companies to purchase it at higher prices. He demanded that the Directorate General of Foreign Trade (DGFT) regulate exports to ensure domestic needs are met before granting export permissions.
The Chief Minister reiterated his demand for permission to import GM soybean meal. He also requested incentives for the export of FCV tobacco from Andhra Pradesh, noting that competing countries like Zimbabwe and Tanzania provide subsidies and duty exemptions to their exporters, while Indian exporters receive no such support.
While agricultural products like tea, coffee, and spices were included in the RODTEP scheme in August 2021, unprocessed tobacco (HSN code 2401) was excluded. He urged the central government to extend RODTEP benefits to unprocessed tobacco immediately.
In a separate letter to Union Finance Minister Nirmala Sitharaman, the Chief Minister requested several financial measures to strengthen the aquaculture sector. He proposed reducing the GST on aquaculture aerators from 18% to 5%.
Referring to the India-US trade agreement, N. Chandrababu Naidu noted that while the import duty on aquaculture products has been reduced to 10%, legal uncertainties regarding tariffs still exist, prompting him to seek intervention from the finance ministry.
The Chief Minister also requested a one-time top-up of ₹5 lakh under the Kisan Credit Card scheme for aquaculture farmers and proposed creating a corpus fund of ₹100 crore through the NFDB for domestic marketing.
Lastly, he requested a reduction in GST on unprocessed tobacco (HSN code 2401) from 40% to 28%, stating that this decision would provide significant relief to millions of tobacco farmers, dealers, and exporters in Andhra Pradesh.
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