Andhra CM Seeks Centre's Backing for Aquaculture, Tobacco Sectors Amid Rising Costs

Andhra Pradesh Chief Minister N. Chandrababu Naidu has written to three Union ministers seeking policy and financial support for the state's aquaculture and tobacco sectors. In separate letters, he highlighted rising input costs and increasing global competition as challenges requiring central intervention.

In a letter to Union Finance Minister Nirmala Sitharaman, Mr. Naidu requested a reduction in the Goods and Services Tax (GST) on aquaculture aerators from 18% to 5%. He also sought a one-time additional credit limit of ₹5 lakh under the Kisan Credit Card scheme for aquaculture farmers, and the creation of a ₹100-crore corpus under the National Fisheries Development Board (NFDB) for domestic marketing. Additionally, he proposed reducing GST on unmanufactured tobacco from 40% to 28%, stating that this would benefit farmers, traders, and exporters while enhancing the sector's competitiveness.

In his letter to Union Commerce Minister Piyush Goyal, the Chief Minister urged regulation of fish meal exports, arguing that export incentives have driven up domestic prices. He also requested export incentives for Flue-Cured Virginia (FCV) tobacco and the inclusion of unmanufactured tobacco under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme to improve export competitiveness.

In a third letter to Union Minister for Fisheries, Animal Husbandry and Dairying Rajiv Ranjan Singh, Mr. Naidu sought permission to import genetically modified (GM) soybean meal—a key ingredient in shrimp feed—to address domestic shortages and reduce feed costs. He noted that similar imports were allowed in 2021 and pointed to increasing shrimp exports from Ecuador, which have intensified competition in major markets such as the United States, China, and Europe.

The Chief Minister also requested the establishment of a regional office of the NFDB in Amaravati, recalling the Union Minister's assurance during a seafood exports workshop in Visakhapatnam. The state government has allotted 7.89 acres at Nekkallu village for the office, along with a fisheries training centre, fisheries park, and public aquarium.

Andhra Pradesh is a leading producer of both shrimp and tobacco in India. The aquaculture sector supports millions of livelihoods, while tobacco cultivation is a significant source of income for farmers in the state's coastal and upland regions. The Chief Minister's requests reflect ongoing concerns about cost pressures and global market dynamics affecting these industries.