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Andhra CM Urges Centre to Aid Aqua Sector Hit by US Tariffs

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N. Chandrababu Naidu, the Chief Minister of Andhra Pradesh, has requested the central government to assist aquaculture farmers in the state who are experiencing significant hardship due to tariffs implemented by the US.

He called upon the federal government to make nationwide policy decisions that would shield aquaculture farmers from financial losses. The Chief Minister also asked for initiatives to boost domestic demand for aquaculture products.

Naidu, whose Telugu Desam Party serves as an important ally in the BJP-led NDA coalition government at the federal level, has sent individual correspondence to three Union Ministers: Finance Minister Nirmala Sitharaman, Commerce and Industry Minister Piyush Goyal, and Fisheries Minister Rajeev Ranjan Singh.

He asked the Finance Minister to examine matters including GST policies and financial assistance, requested the Commerce and Industry Minister to negotiate international agreements related to the aquaculture industry, and urged the Fisheries Minister to work on developing the domestic marketplace.

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The Chief Minister emphasized that aquaculture producers and households relying on this industry in Andhra Pradesh are experiencing difficulties. He also outlined the steps that the state government is currently implementing to address the situation.

Andhra Pradesh is responsible for 80 percent of India's shrimp export production and 34 percent of its marine product exports, generating approximately Rs 21,246 crore in annual export revenue. Around 2.5 lakh families involved in aquaculture farming and 30 lakh individuals working in related industries are currently facing challenges.

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According to the Chief Minister, tariffs imposed by the United States have created the most significant impact on shrimp export operations. The estimated financial losses reach Rs 25,000 crore, with roughly half of all export contracts being terminated. Approximately Rs 600 crore in additional tariff costs has affected nearly 2,000 shipping containers designated for export. The Chief Minister mentioned that the state administration has already begun implementing support measures, including negotiations with feed manufacturers that resulted in a Rs 9 per kg reduction in aquaculture feed maximum retail prices, while subsidized transformer distribution is also under consideration.

The Chief Minister sought banking assistance for export businesses and aquaculture firms, which included a 240-day suspension of loan and interest payments, interest rate subsidies, and temporary elimination of the 5 percent GST on frozen shrimp products.

 

Additionally, he encouraged the federal government to concentrate on expanding export destinations beyond the United States. He recommended establishing Free Trade Agreements with the European Union, South Korea, Saudi Arabia, and Russia to enhance export activities. The Chief Minister further requested provisional financial assistance for exporters, clarification regarding tariff and tax relief programs, and mentioned that exporters were prepared to deliver seafood products to European Union markets.

The Chief Minister emphasized the importance of growing the domestic aquaculture sector. He called for a Rs 100 crore fund, development of refrigerated storage facilities, sanitary fish and seafood marketplaces, and indicated that the state government was prepared to establish the Andhra Pradesh Shrimp Producers Coordination Committee to enable direct connections between farmers and markets.

He additionally advocated for public awareness initiatives to encourage the consumption of seafood, emphasizing that aquatic products contain high levels of protein and offer excellent nutritional value. Currently, seafood consumption per person in India stands at merely 12-13 kg annually, which falls short of the worldwide average of 20-30 kg. Enhanced seafood consumption would benefit public health while simultaneously offering essential assistance to aquaculture farmers, the Chief Minister stated.

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To enhance transportation infrastructure, he asked the Central government to operate specialized trains for transporting aquatic products from Southern India to different regions across the nation. He further recommended that fishermen receive one-time supplementary loans worth Rs one lakh through Kisan Credit Cards, and that processing, packaging, and cold storage infrastructure be enhanced via FIDF to boost market competitiveness in emerging sectors.

The Chief Minister additionally requested the establishment of regional branches of research organizations like ICAR-CIBA and ICAR-NBFGR within Andhra Pradesh.


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