Andhra Pradesh's Aquaculture and Tobacco Farmers Struggle Amid Tariff and Tax Challenges

Andhra Pradesh Chief Minister N Chandrababu Naidu addresses the challenges facing aquaculture and tobacco farmers due to tariffs on shrimp exports and increased taxation on tobacco. Naidu urges the Indian government to negotiate tariff reductions with the U.S., expand alternative markets, and adjust domestic fiscal policies to safeguard farmers' livelihoods.

Andhra Pradesh Chief Minister N Chandrababu Naidu has communicated with Union Ministers Piyush Goyal and Nirmala Sitharaman to express concerns over the harsh tariffs and taxation policies affecting aquaculture and tobacco farmers in the state. The tariffs imposed on shrimp imports by the United States have resulted in a hefty 60 percent tax burden, significantly hampering Indian exports from Andhra Pradesh.

This situation threatens exports valued at approximately Rs 25,000 crore, placing the livelihoods of 2.5 lakh aquaculture farmers and over 30 lakh workers reliant on this sector at serious risk. Naidu has highlighted the steep decline in domestic aquaculture product prices and has requested governmental support through several fiscal relief measures, such as expanding working capital limits and offering tax exemptions.

In separate communications, the Chief Minister called attention to the setbacks faced by Flue-Cured Virginia (FCV) tobacco farmers, affected by increased Goods and Services Tax (GST) and excise duties. Naidu has cautioned against the potential rise of illegal tobacco markets due to burdensome taxation and is advocating for policy reviews to protect the interests of Andhra Pradesh's agricultural stakeholders.