Can the Centre Support Aqua Farmers in Andhra Pradesh Amid US Tariffs?

Amaravati, Sep 15 (NationPress) Chief Minister N. Chandrababu Naidu of Andhra Pradesh has reached out to the Centre, urging assistance for aqua farmers who are suffering due to the tariffs enforced by the US. He called for national-level interventions to safeguard these farmers from financial losses and highlighted the need for strategies to enhance domestic consumption of aqua products.

Naidu, representing the Telugu Desam Party, which is a significant ally in the BJP-led NDA government, has sent individual letters to Union Finance Minister Nirmala Sitharaman, Commerce and Industry Minister Piyush Goyal, and Fisheries Minister Rajeev Ranjan Singh.

In his letters, he emphasized the necessity for the Finance Minister to address issues like GST and financial relief, while urging the Commerce and Industry Minister to negotiate international agreements in the aqua sector. Additionally, he asked the Fisheries Minister to prioritize the growth of the domestic market.

Naidu pointed out the challenges faced by aqua farmers and their families in Andhra Pradesh, elaborating on the state government's ongoing initiatives.

With Andhra Pradesh contributing 80 percent of the nation's shrimp exports and 34 percent of marine exports, the sector is worth approximately Rs 21,246 crore annually. This crisis affects around 2.5 lakh aqua farmer families and 30 lakh individuals in related sectors.

The Chief Minister noted that the tariffs from the US have severely impacted shrimp exports, leading to estimated losses of Rs 25,000 crore, with around 50 percent of export orders being cancelled. A burden of nearly Rs 600 crore in tariffs has fallen on about 2,000 containers being exported. He indicated that the state has already implemented relief measures, including discussions with feed producers to lower aqua feed prices by Rs 9 per kg and considering subsidized transformer supplies.

Naidu called for bank support for exporters and aqua businesses, which includes a 240-day moratorium on loan repayments, interest subsidies, and a temporary waiver of 5 percent GST on frozen shrimp.

He also encouraged the Centre to diversify export markets beyond the US, proposing Free Trade Agreements (FTAs) with the European Union, South Korea, Saudi Arabia, and Russia to boost exports. Furthermore, he requested immediate financial support for exporters and clarity on tax relief schemes, noting that exporters are ready to supply seafood to the EU.

To expand the domestic aqua market, the CM recommended a Rs 100 crore corpus fund, the establishment of cold storage facilities, and hygienic seafood markets. He mentioned that the state government is prepared to set up the Andhra Pradesh Shrimp Producers Coordination Committee to facilitate direct supply chains.

He also called for awareness campaigns to promote seafood consumption, highlighting its nutritional value. Currently, India’s per capita seafood consumption stands at only 12-13 kg yearly, in contrast to the global average of 20-30 kg. Increasing this consumption would not only enhance public health but also provide essential support to aqua farmers.

To improve logistics, Naidu requested dedicated trains for transporting aqua products from South India across the country. He also urged that fishermen receive one-time loans of Rs one lakh under Kisan Credit Cards and that processing, packaging, and cold-chain facilities be strengthened through the FIDF for better competitiveness in new markets.

Lastly, he requested the establishment of regional offices for research institutions like ICAR-CIBA and ICAR-NBFGR in Andhra Pradesh.