Andhra: CM seeks Centre's support for tobacco procurement, aqua exports, GST cut on mango pulp, reconsider import duties on palm oil

India Gazette

8 hours ago

Amaravati (Andhra Pradesh) [India], June 15 (ANI): Andhra Chief Minister N Chandrababu Naidu met with visiting Union Commerce Minister Piyush Goyal here on Sunday to discuss the challenges faced by farmers of various commercial crops and the aqua sector in the state.
The Union Minister was on an official visit to the state. Naidu's Telugu Desam Party (TDP) is a key ally in the NDA government at the Centre.
The meeting covered key issues, including HD Burley tobacco procurement, import duties on crude palm oil, tariffs imposed by the United States on aqua exports, and GST on mango pulp, according to a statement by Andhra Pradesh's Directorate of Information and Public Relations (DIPR).
CM Naidu explained the on-ground realities and hardships faced by farmers in the state and highlighted the steps being taken by the state government. He appealed for central support to address these challenges.
The Chief Minister informed the Union Minister that farmers cultivating HD Burley and White Burley tobacco are facing severe price drops this season.
To address this, the state government has already initiated procurement efforts.
CM Naidu stated that a plan is in place to procure 20 million kilograms of tobacco at a cost of Rs 300 crore. Seven procurement centers have been established in Bapatla, Guntur, Palnadu, and Prakasam districts through the AP MARKFED.
He requested that Rs 150 crore be provided through the Tobacco Board to support these efforts.
He further informed that the tobacco cultivation area has increased to 1.31 lakh hectares this year compared to the previous year.
With declining international demand, farmers are suffering losses. He urged the Centre to amend the law to bring tobacco production and marketing fully under the Tobacco Board's purview.
The CM brought to the Minister's notice the difficulties faced by palm oil farmers due to the reduction of import duty on crude palm oil to 10 per cent.
He noted that this has led to low prices for domestic farmers.
CM Naidu urged that the earlier duty structure be reinstated, as the current cut would hinder the targets set under the National Mission on Edible Oils.
Highlighting the impact of US tariffs, the Chief Minister explained that around 8 lakh aqua farmers in the state are incurring losses due to a 27 per cent tariff imposed on exports.
He requested the Union Minister to initiate dialogue with US authorities to reduce the tariff burden.
The Chief Minister emphasised that these tariffs are pushing farmers, hatcheries, feed mills, processing units, and exporters into crisis. He appealed for proactive intervention from the Centre to resolve the issue.
CM Naidu also appealed to reduce the GST on mango pulp from 12 per cent to 5 per cent.
He pointed out that mango toffee (mamidi thandra) is taxed at 5 per cent and suggested that mango pulp should be treated similarly.
He added that reducing the GST would benefit both mango farmers and the pulp processing industry.
He informed the Minister that this issue has already been raised with Union Finance Minister Nirmala Sitharaman.
In response to CM Naidu's requests, Union Minister Piyush Goyal assured that the Centre would take positive steps to support farmers engaged in tobacco, palm oil, and mango cultivation, the Andhra Pradesh DIPR statement added.
'We had an in-depth discussion on a wide range of development initiatives in the state, with a special focus on industrial growth. Assured the Government of Andhra Pradesh of our full support as it spearheads the transformation in the lives of the people of the state,' the Union minister also wrote on X after the meeting.
Talking to reporters later, the Union minister said he met officials of the Industrial Development Corporation, a national body, that is developing three industrial nodes in Andhra Pradesh.
'We also extensively reviewed...the development of all the three nodes, potential industries that we can attract, how we can speed up the development of the three nodes being set up in partnership with central government and Andhra Pradesh Government, and potentially what more we can do to attract different sectors, foreign direct investment and promote job generation in the state of Andhra Pradesh,' he said.
He also apprised that the works for new campus of National Institute of Design (NID) has made a 'good progress'. NID is coming up in Kakinada.
Talking about the Tobacco Board, which happens to be in Andhra Pradesh, Piyush Goyal said, 'I believe the Tobacco Board has also made very good progress -- with the farmers over the last four years, almost doubling their income.'
He conceded that there are, however, some issues about excess production, which he said will have to be curtailed.
He said he has directed his officials to make sure that excess production is disallowed.
'Otherwise these good prices are not sustainable and therefore I have directed the officials to make sure that excess production should no more be allowed and we should have production as per the approved plan, so that the prices can be maintained at a reasonable level, otherwise everybody will suffer,' Piyush Goyal told reporters.
India has a prominent place in the production of tobacco in the world, and Andhra Pradesh is a major contributor. (ANI)