Amaravati, Jun 18 (PTI) Andhra Pradesh Chief Minister N Chandrababu Naidu on Thursday directed aquaculture feed manufacturers to slash prices by Rs 4 per kg to alleviate the financial burden on farmers, prompting the companies to agree.

Both feed manufacturers and aqua farmers agreed to the proposal, which will bring down the maximum retail price to Rs 108 per kg from the current Rs 112 per kg.

"In a meeting held at the state secretariat today with aqua farmers and feed company representatives, the CM directed that feed prices be reduced by Rs 4 per kg to reduce the additional financial burden on aqua farmers," said a press release.

The CM directed the formation of a committee comprising aqua farmers, feed manufacturers and officials to evolve a long-term mechanism for feed price stabilisation.

The committee was asked to submit its report within 20 days, after which a final decision on pricing will be taken, said the press release.

Besides feed pricing, the committee will examine processing-related issues and pollution control measures and submit recommendations to the government, it said.

During the meeting, farmers alleged that feed prices had increased six times during the previous government's tenure without any intervention to protect farmers.

They asserted that feed prices rose from Rs 87.8 per kg in 2019 to Rs 107.8 per kg by the end of the previous administration, said the press release.

"They also noted that the coalition government had reduced feed prices by Rs 5.8 per kg soon after assuming office. Farmers clarified that they had never opposed the coalition government and alleged that certain individuals had recently attempted to politicise the issue, posing as aqua farmers," said the press release.

The aquaculture farmers thanked the CM for providing power to the sector at a subsidised rate of Rs 1.5 per unit, it said.

They briefed the CM on the challenges currently being faced by the sector, pointing out that while the prices of all inputs used in aquaculture have increased significantly, the price of aquaculture produce has not risen proportionately.

Underscoring the difficulties related to processing, farmers requested greater awareness regarding subsidies offered through the Fisheries Department.

Seeking exemption from certain empanelment requirements associated with subsidy schemes, they requested wider insurance coverage for shrimp ponds.

Farmers urged the government to encourage the establishment of nursery ponds and ensure adequate water supply for fish and shrimp farms.

Responding positively, the CM assured farmers that there would be no shortage of water supply for aquaculture operations, said the press release.

Representatives of feed manufacturing companies explained that a shortage of key raw materials such as soybean and fishmeal, coupled with rising domestic prices, had increased production costs.

They told Naidu that imports of low-cost soybean from the United States are currently not permitted, compelling manufacturers to procure it from the domestic market at nearly double the price, making a price rise "unavoidable." Naidu said protecting the aquaculture sector, which supports lakhs of livelihoods, is a key responsibility of the coalition government.

He said the government has provided Rs 1,543 crore in electricity subsidies to the aqua sector over the last two years.

The CM urged all stakeholders to work sincerely toward a "lasting solution" that benefited both farmers and feed manufacturers.

Emphasising the importance of quality and certification, he cautioned farmers to remain vigilant about export standards.

Referring to a recent instance in which China rejected chilli exports due to pesticide residue concerns, he stressed the need to maintain strict quality control in aquaculture production as well, the press release added. PTI STH SSK