Andhra Pradesh Chief Minister N. Chandrababu Naidu on Thursday, 18 June brokered a resolution to the aqua feed price hike standoff, convening aqua farmers and feed manufacturers at the State Secretariat in Amaravati. Following the meeting, manufacturers agreed to reduce feed prices by ₹4 per kilogram, bringing the Maximum Retail Price (MRP) down from ₹112 to ₹108 per kilogram.

Key Developments from the Meeting

Both aqua farmers and feed manufacturers accepted the Chief Minister's proposal for the price reduction, according to an official release. Naidu also ordered the formation of a tripartite committee comprising aqua farmers, feed manufacturers, and government officials to devise a long-term mechanism for feed price stabilisation. The committee has been directed to submit its report within 20 days, after which a final pricing decision will be taken.

Beyond pricing, the committee will also examine processing-related issues and pollution control measures, with recommendations to be submitted to the state government.

What Farmers Told the Chief Minister

Aqua farmers briefed Naidu on the sector's mounting challenges, noting that while input costs had risen sharply, the prices of aqua produce had not kept pace. Farmers specifically flagged difficulties in processing, sought greater awareness of Fisheries Department subsidies, and requested exemptions from certain empanelment requirements under subsidy schemes. They also urged broader insurance coverage for shrimp ponds and called on the government to promote nursery pond establishment and ensure adequate water supply for fish and shrimp farms.

Responding to the water supply concern, the Chief Minister assured farmers there would be no shortage of water for aquaculture operations. Farmers also acknowledged Naidu's role in expanding aquaculture from the Godavari districts to the entire coastal belt stretching from Srikakulam to Nellore, and thanked the government for providing power to the sector at a subsidised rate of ₹1.50 per unit.

Why Feed Prices Rose: Manufacturers Explain

Representatives of feed manufacturing companies attributed the price hike to shortages of key raw materials, particularly soybean and fishmeal, compounded by rising domestic prices. They informed the Chief Minister that imports of low-cost soybean from the United States are currently not permitted, forcing manufacturers to source soybean from the domestic market at nearly double the import price. This structural cost pressure, they said, made price increases unavoidable.

Government's Position and Subsidy Commitment

Chief Minister Naidu framed the aquaculture sector as a livelihood lifeline supporting lakhs of families and a core responsibility of the coalition government. He stated that the government has provided ₹1,543 crore in electricity subsidies to the aqua sector over the last two years. He noted that the government stepped in after feed companies unilaterally raised prices, underscoring the administration's intent to protect farmer interests.

With the committee report due in 20 days, the outcome of this intervention will determine whether a durable pricing framework can be established for one of Andhra Pradesh's most economically significant sectors.