Babu seeks central support for aquaculture, tobacco farmers

Metro India News | AMARAVATI

Andhra Pradesh Chief Minister N Chandrababu Naidu has written to Union Ministers Nirmala Sitharaman, Rajiv Ranjan Singh and Piyush Goyal seeking measures to support the state's aquaculture and tobacco sectors. In his letter to Union Finance Minister Nirmala Sitharaman, Naidu sought reduction of GST on aquaculture aerators from 18 per cent to five per cent and unmanufactured tobacco from 40 per cent to 28 per cent.

Referring to the India-US trade agreement, he said import duties on aquaculture products had fallen to 10 per cent but legal uncertainty over tariffs continued to affect the sector. Naidu also requested a one-time top-up of up to Rs 5 lakh under the Kisan Credit Card scheme for aquaculture farmers and a Rs 100 crore NFDB corpus fund, an official release said on Monday.

He further sought subsidies for value-added aquaculture products, saying these would strengthen shrimp exports, while lower GST on tobacco would ease liquidity and working capital constraints. In his letter to Union Fisheries Minister Rajiv Ranjan Singh, the chief minister sought permission to import Genetically Modified (GM) soybean meal, saying rising prices had sharply increased shrimp feed costs and burdened aqua farmers.

"The aquaculture and tobacco sectors require timely policy support from the Centre to protect farmers' livelihoods and improve the sectors' long-term sustainability," Naidu said. He requested the Centre to permit soybean meal imports to overcome the domestic shortage and check rising prices, noting that limited imports had been allowed in 2021.

Naidu said increasing shrimp production and exports from Ecuador had intensified competition for Indian shrimp in key markets, including the United States, China and Europe. He said imported GM soybean meal cannot be used for agriculture or seed production, posing no threat to biodiversity, while ensuring quality raw material and supporting farmers' livelihoods. Naidu also sought a regional office of the National Fisheries Development Board (NFDB) in Amaravati to strengthen Andhra Pradesh's aquaculture sector and promote the Blue Economy.

Recalling an assurance made during the June 5 Seafood Exports Workshop in Visakhapatnam, he said the state had allotted over 7.8 acres at Nekkallu for the project.

The chief minister urged the Centre to take possession of the land immediately and complete the regional office, training centre, fisheries park and public aquarium by 2028. Writing to Union Commerce and Industry Minister Piyush Goyal, Naidu sought regulation of fish meal exports through the Directorate General of Foreign Trade (DGFT) to protect domestic shrimp feed manufacturers.

He said fish meal exports receive a five per cent incentive, forcing domestic manufacturers to procure the commodity at higher prices, and sought priority for domestic requirements. Naidu also reiterated his request to permit GM soybean meal imports and sought export incentives for Flue-Cured Virginia (FCV) tobacco to improve competitiveness in global markets.

He noted that competing countries such as Zimbabwe and Tanzania provide subsidies and duty concessions, while Indian tobacco exporters receive no comparable support. The chief minister urged the Centre to extend Remission of Duties and Taxes on Exported Products (RoDTEP) benefits to unmanufactured tobacco under HS Codes 2401, 2401 10, 2401 20 and 2401 30. He also sought inclusion of FCV tobacco under the Interest Equalisation Scheme and the Niryat Protsahan Scheme to support tobacco exports.