Naidu seeks Centre's help in tobacco procurement, easing U.S. tariff on aqua exports
In a significant meeting aimed at addressing the concerns of Andhra Pradesh's farmers and exporters, Chief Minister N. Chandrababu Naidu held detailed discussions with Union Commerce and Industry Minister Piyush Goyal in Amaravati on Sunday.
Mr. Goyal, who arrived to participate in a Tobacco Board meeting in Guntur, called on Mr. Naidu at this camp office.
Mr. Naidu raised several critical issues affecting the State's agricultural and aquaculture sectors. These included the procurement of HD Burley tobacco, the impact of reduced import duties on crude palm oil, GST on mango pulp, and steep tariffs imposed by the United States on aqua exports.
Stating that farmers cultivating HD Burley and White Burley tobacco were suffering due to falling prices this season, Mr. Naidu said the State government had already begun the procurement process and decided to purchase 20 million kg of tobacco at an estimated cost of ₹300 crore. Seven procurement centres had been set up through AP Markfed across Bapatla, Guntur, Palnadu, and Prakasam districts.
He requested the Union Minister to see that the Tobacco Board bears ₹150 crore of this expenditure. This year, 1.31 lakh hectares had been cultivated with tobacco, which was higher than the previous year. The international market demand has dropped, leading to price crashes that are impacting farmers, he said.
Mr. Naidu also urged the Union Minister to consider legislative amendments to bring tobacco production and marketing fully under the control of the Tobacco Board, ensuring better price stabilisation and farmer protection.
Expressing concern over the reduced import duty on crude palm oil, the Chief Minister highlighted that lowering the duty to 10% is adversely impacting domestic farmers by suppressing prices. He urged the Centre to revert to the previous policy framework and warned that the current move could undermine the objectives of the National Mission on Edible Oils.
Mr. Naidu also brought up the 27% tariff imposed by the United States on Indian seafood exports, which is affecting nearly 8 lakh aqua farmers in Andhra Pradesh. He appealed to the Union Minister to initiate diplomatic talks with the U.S. to ease the tariff burden and protect the livelihoods of those dependent on aquaculture. 'These steep tariffs have thrown hatcheries, feed mills, processing units, and exporters into crisis,' he said.
GST on mango pulp
Seeking relief for mango farmers and the food processing industry, the Chief Minister requested a reduction in GST on mango pulp from 12% to 5%. He pointed out that mango leather (Aam Papad) already attracts a 5% GST and advocated for parity in treatment to benefit both farmers and pulp manufacturers. Mr. Naidu said that he had already raised this issue with Union Finance Minister Nirmala Sitharaman.
Mr. Piyush Goyal responded positively to the Chief Minister's requests and assured that the Centre would actively consider measures to support farmers and exporters from Andhra Pradesh.
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