Amaravati, May 17 (PTI) Andhra Pradesh Chief Minister N Chandrababu Naidu has written to Union Ministers Piyush Goyal and Nirmala Sitharaman over issues affecting aquaculture and tobacco farmers in the state.

The chief minister said in the letter that the tariff imposed by the United States on shrimp imports from India is resulting in nearly a 60 per cent tax burden on Indian exports, severely impacting aqua products exported from Andhra Pradesh.

"The tariff burden on shrimp exports is severely affecting aquaculture farmers and exporters in Andhra Pradesh and putting exports worth nearly Rs 25,000 crore at risk," Naidu said in his letter, according to a release.

According to Naidu, families of around 2.5 lakh aquaculture farmers and more than 30 lakh workers who depend on the sector were facing a livelihood crisis.

Naidu noted that prices of aquaculture products in the domestic market had already declined up to 25 per cent amid the prevailing crisis.

He informed the Centre that the Andhra Pradesh government had already reduced shrimp feed prices by Rs 9 per kilogram and was supplying electricity to the aquaculture sector at Rs 1.5 per unit to support farmers and protect the industry.

Seeking relief measures, the chief minister requested increasing working capital limits by 30 per cent, granting a 240-day moratorium on interest payments, and temporarily exempting five per cent interest and five per cent Goods and Services Tax (GST).

Naidu urged the Centre to hold discussions with the United States for the reduction of tariffs and take steps to increase exports to alternative markets such as Russia, the European Union and Australia.

The Chief Minister further requested the Central government to include shrimp in the food menu of the Indian Armed Forces, enhance the Kisan Credit Card limit to Rs 1 lakh for aquaculture farmers and provide a special railway facility for shrimp transportation from southern to northern states.

In a separate letter to the Finance Minister Sitharaman, Naidu sought sanction of a Rs 100 crore corpus fund through the National Fisheries Development Board (NFDB) for setting up a Prawn Producers Coordination Committee in Andhra Pradesh and requested the establishment of an additional Regional Fisheries Institute in the state.

Meanwhile, the chief minister also wrote to Goyal and Sitharaman, highlighting the difficulties being faced by Flue-Cured Virginia (FCV) tobacco farmers following the revised taxation policy on cigarettes introduced from February 1, 2026.

According to Naidu, increasing GST on cigarettes from 28 per cent to 40 per cent, along with raising excise duty from Rs 2,050 to Rs 8,500 per 1,000 cigarettes depending on category and length, was adversely affecting tobacco farmers.

He said that the impact of tax-on-tax increases, such as GST, excise duty, and National Calamity Contingent Duty, had slowed market purchases and affected procurement.

Naidu noted that tobacco's opening auction price had fallen from Rs 280 per kg last year to Rs 250 this year, while companies' reduction of procurement quantities was causing losses to farmers.

The chief minister also highlighted that exporters were facing difficulties due to prevailing international geopolitical conditions.

The livelihood of nearly 43,000 tobacco farmers in Andhra Pradesh and lakhs of workers dependent on the sector were under threat, Naidu said.

Naidu cautioned that excessive taxation on legal cigarettes could lead to illegal tobacco products entering the market and urged the Centre to review the enhanced taxation policy and excise duty structure to protect farmers' interests and stabilise the market. PTI MS ADB

Aquaculture and tobacco taxation pressures intensify as higher tariffs, GST and excise duties strain farmers and market procurement. Aquaculture exporters and farmers in Andhra Pradesh are under pressure from the tariff burden on shrimp exports, domestic price weakness, and livelihood stress, prompting requests for higher working capital, interest relief, temporary exemption from interest and GST, export diversification, and transport and credit support. FCV tobacco farmers are also affected by higher GST and excise duty on cigarettes, which is reducing procurement and auction prices, and a review of the enhanced taxation and excise structure is sought to protect farmer interests and stabilise the market.