Chandrababu Naidu urges Centre to cut shrimp feed costs, protect AP exports
Synopsis
Andhra Pradesh CM Chandrababu Naidu has taken his state's aquaculture crisis straight to the Finance Minister — warning that a 20% spike in shrimp feed production costs and a looming US anti-dumping duty together threaten 30 lakh livelihoods and 80% of India's shrimp export base. The ask: ₹100 crore corpus fund, tariff negotiations with Washington, and a GST fix for tobacco farmers.
Key Takeaways
Chandrababu Naidu met Finance Minister Nirmala Sitharaman on 17 July to seek relief for the aquaculture and tobacco sectors.
Shrimp feed production costs have risen by more than 20 per cent between January and April 2025, with the cost per tonne up by ₹25,000 .
Andhra Pradesh accounts for nearly 80 per cent of India's shrimp exports and supports 30 lakh livelihoods in the aquaculture sector.
The US has imposed a 5.77 per cent countervailing duty on Indian shrimp and is considering an additional anti-dumping levy.
Naidu sought a ₹100 crore corpus fund via NFDB for the Andhra Pradesh Prawn Producers Coordination Committee.
On tobacco, only 34 million kg of an estimated 230 million kg production has been procured so far this season.
Andhra Pradesh Chief Minister N. Chandrababu Naidu on Friday, 17 July met Union Finance Minister Nirmala Sitharaman in Amaravati to press the Centre for urgent policy intervention to stabilise shrimp feed raw material prices, warning that soaring input costs are crippling aqua farmers and threatening the state's seafood export sector.
The Feed Cost Crisis
Citing representations from the Shrimp Feed Manufacturers Association, Naidu said shrimp feed prices surged sharply between January and April this year, pushing production costs up by more than 20 per cent. The cost of producing one tonne of shrimp feed has risen by ₹25,000, squeezing margins across the supply chain.
The Chief Minister stressed that the aquaculture sector sustains the livelihoods of nearly 30 lakh people in Andhra Pradesh — spanning farmers, processing units, exporters, hatcheries, feed manufacturers, and allied industries. Even minor disruptions in feed availability, he noted, translate directly into lost income for aqua farmers and a dip in export performance.
What Naidu Asked the Centre to Do
According to an official release, the Chief Minister sought a broad package of support measures. These include promoting the domestic market for shrimp and aquaculture products, encouraging Farmer Producer Organisations (FPOs), strengthening market linkages, and supporting branding, processing, and retail integration. He also called for an institutional framework to shield the sector from global demand volatility.
Naidu further requested financial assistance through the National Fisheries Development Board (NFDB) to establish the Andhra Pradesh Prawn Producers Coordination Committee with a corpus fund of ₹100 crore.
US Tariff Threat and Export Concerns
Andhra Pradesh accounts for nearly 80 per cent of India's shrimp exports, making it acutely vulnerable to any shift in US trade policy. Naidu flagged that the United States has already imposed a 5.77 per cent countervailing duty on Indian shrimp exports and is considering an additional anti-dumping duty. He urged the Centre to negotiate with Washington for tariff relief.
He also called on the Centre to either remove the existing 30 per cent customs duty on seafood exports or grant an exemption in the interest of farmers, and to actively identify and develop alternative international markets for Indian aqua products.
Tobacco Farmers Also in Distress
Naidu raised a second, distinct concern during the meeting: the condition of tobacco farmers. He said placing tobacco products in the highest GST slab since the rollout of GST — compounded by heavy excise duties on cigarettes — has dampened procurement by manufacturers in Andhra Pradesh and Karnataka.
He pointed out that against an estimated production of 230 million kilograms, only 34 million kilograms have been procured so far this season, a significantly slower pace than the previous year. Naidu warned that reduced procurement is hurting farmers, agricultural labourers, auction workers, transport operators, and MSMEs. He also cautioned that the widening price gap between legal cigarettes and illicit tobacco could fuel smuggling and tax evasion, urging the Centre to act immediately.
What Happens Next
No formal commitment from Finance Minister Sitharaman was mentioned in the official release. The outcome of trade negotiations with the US on seafood tariffs, and any Centre-level policy response on shrimp feed costs, will be closely watched by the 30 lakh livelihoods tied to Andhra Pradesh's aquaculture sector.
Point of View
But the Centre's bandwidth on trade negotiations is constrained by the broader India-US tariff standoff. The ₹100 crore corpus request is modest relative to the sector's scale, but the real test is whether New Delhi will push back on Washington's countervailing and anti-dumping duties before the export window narrows further. The tobacco distress, raised in the same breath, underscores how AP's agricultural economy is being squeezed from two directions simultaneously — global trade headwinds and domestic tax policy — with MSMEs and farm labourers absorbing the shock at the bottom.
NationPress
17 Jul 2026
Frequently Asked Questions
Why is Chandrababu Naidu seeking Centre's help on shrimp feed costs?
Shrimp feed production costs in Andhra Pradesh rose by more than 20 per cent between January and April 2025, with the cost per tonne increasing by ₹25,000. Since the state accounts for 80 per cent of India's shrimp exports and 30 lakh livelihoods depend on the sector, Naidu has urged the Centre to stabilise raw material prices and provide institutional support.
What is the US tariff threat to Indian shrimp exports?
The United States has imposed a 5.77 per cent countervailing duty on Indian shrimp exports and is reportedly considering an additional anti-dumping duty. Naidu has asked the Centre to negotiate with Washington for the removal or reduction of these levies, warning that proposed reciprocal tariffs would severely impact Andhra Pradesh.
What is the Andhra Pradesh Prawn Producers Coordination Committee?
It is a proposed institutional body for which Naidu has sought ₹100 crore in financial assistance through the National Fisheries Development Board (NFDB). The committee is intended to provide structural support and market stability to the state's prawn farming community.
How are tobacco farmers in Andhra Pradesh affected?
High GST on tobacco products and heavy excise duty on cigarettes have reduced procurement by manufacturers in Andhra Pradesh and Karnataka. Against an estimated production of 230 million kilograms this season, only 34 million kilograms have been procured so far, hitting farmers, labourers, and MSMEs.
What specific policy measures did Naidu request from the Centre?
Naidu requested stabilisation of shrimp feed raw material prices, promotion of domestic aquaculture markets, support for FPOs and market linkages, a ₹100 crore NFDB corpus fund, US tariff negotiations, removal of the 30 per cent customs duty on seafood exports, and immediate relief measures for tobacco farmers.
