VIJAYAWADA: Chief Minister N Chandrababu Naidu has urged the Union government to adopt policy measures to stabilise the prices of raw materials used in shrimp feed production, highlighting that the sharp increase in input costs is severely affecting aqua farmers and seafood exports.
During a meeting with Union Finance Minister Nirmala Sitharaman at his Camp Office in Undavalli on Friday, the Chief Minister said the aquaculture sector provides livelihoods to lakhs of farmers, workers, processing units, exporters, hatcheries, feed manufacturers and several allied industries. Even a minor disruption in feed availability has a direct impact on aqua farmers’ livelihoods and export performance, he noted.
Referring to representations made by the Shrimp Feed Manufacturers Association, the Chief Minister said shrimp feed prices increased significantly between January and April this year, pushing production costs up by more than 20 percent. Fish feed prices increased from Rs 1.55 lakh to Rs 2.40 lakh per tonne, fish oil from Rs 2.80 lakh to Rs 4.40 lakh per tonne, and soy lecithin from Rs 68,000 to Rs 1.10 lakh per tonne. Together, these increases have added nearly Rs 25,000 to the cost of producing one tonne of shrimp feed.
The Chief Minister requested the Centre to promote the domestic market for shrimp and aquaculture products, encourage Farmer Producer Organisations (FPOs), strengthen market linkages, support branding, processing and retail integration and establish an institutional framework to protect the sector from fluctuations in global demand.
He also sought financial assistance through the National Fisheries Development Board (NFDB) for establishing the Andhra Pradesh Prawn Producers Coordination Committee with a Rs 100-crore corpus fund.
The Chief Minister urged the Union government to negotiate with the United States to reduce tariffs on Indian seafood exports. He pointed out that the US has imposed a 5.77 percent countervailing duty on Indian shrimp exports and is also considering an anti-dumping duty. He warned that the proposed reciprocal tariffs by the US administration would severely affect Andhra Pradesh, which accounts for nearly 80 percent of India’s shrimp exports.
He noted that nearly 30 lakh people in the State depend on the aquaculture sector for their livelihood and requested the Centre to seek either the removal of the existing 30 percent customs duty on seafood exports or an exemption in the interest of farmers. He also urged the Centre to identify and expand access to alternative international markets for aqua products.
The Chief Minister informed the Union Finance Minister that placing tobacco products in the highest GST slab since the introduction of GST has adversely impacted tobacco farmers.
Industry stakeholders have expressed concern over the heavy excise duty on cigarettes, which is further subjected to GST. He said manufacturers in Andhra Pradesh and Karnataka have reduced procurement. As a result, this year’s auction process in Andhra Pradesh has been significantly slower than last season. Against an estimated production of 230 million kilograms, only 34 million kilograms have been procured so far..
He also highlighted that the widening price gap between legal cigarettes and illicit tobacco products could encourage smuggling and tax evasion. He urged the Centre to take immediate measures to safeguard tobacco farmers.
The Chief Minister sought full Central support for the Rayalaseema Integrated Horticulture Development Plan.