Andhra Pradesh Seeks Centre's Support for Aqua and Tobacco Sectors

Andhra Pradesh has urged the Centre to roll out a comprehensive package of tax relief, financial assistance and export incentives for its aquaculture and tobacco sectors, as rising input costs and increasing global competition continue to strain two of the State's most important export-oriented industries. In separate letters to Union Ministers Nirmala Sitharaman, Rajiv Ranjan Singh, and Piyush Goyal, Chief Minister N. Chandrababu Naidu proposed a series of measures aimed at improving the competitiveness of both sectors while protecting the livelihoods of thousands of farmers.

In his representation to Finance Minister Nirmala Sitharaman, Naidu sought a reduction in the GST on aquaculture aerators from 18% to 5% and on unmanufactured tobacco from 40% to 28%. He also requested a one-time top-up of up to ₹5 lakh under the Kisan Credit Card (KCC) scheme for aqua farmers and proposed a ₹100-crore corpus fund for the National Fisheries Development Board (NFDB). He said these measures would lower production costs, encourage value-added seafood exports, and ease working capital constraints for tobacco traders.

The Chief Minister noted that while the India-US trade agreement has reduced import tariffs on Indian seafood to 10%, legal uncertainty over tariff implementation continues to affect exporters. He also highlighted the growing competition from Ecuador, which has significantly expanded shrimp production and exports to key markets including the United States, China and Europe.

In a separate letter to Union Fisheries Minister Rajiv Ranjan Singh, Naidu urged the Centre to allow imports of genetically modified (GM) soybean meal exclusively for shrimp feed manufacturing, citing soaring feed costs caused by domestic shortages. He clarified that the imported soybean meal would not be used for cultivation or seed production, and therefore would not pose any risk to biodiversity. Recalling that similar imports were permitted in 2021, he said the move would provide immediate relief to aqua farmers.

He also proposed setting up an NFDB Regional Office in Amaravati, stating that the State has already allotted 7.8 acres of land at Nekkallu for the project. The proposed campus would include a regional office, training centre, fisheries park and public aquarium, strengthening the Centre's Blue Economy initiative.

In his communication to Commerce and Industry Minister Piyush Goyal, Naidu called for regulation of fish meal exports through the Directorate General of Foreign Trade (DGFT), arguing that the existing 5% export incentive has inflated domestic prices and increased feed production costs. He also sought export incentives for Flue-Cured Virginia (FCV) tobacco, extension of RoDTEP benefits to unmanufactured tobacco, and inclusion of FCV tobacco under the Interest Equalisation Scheme and other export promotion programmes. He said timely policy support would help Andhra Pradesh sustain exports, improve farmer incomes and strengthen the long-term growth of both sectors.