Andhra Pradesh Chief Minister Nara Chandrababu Naidu wrote to Union Minister of Commerce and Industry Piyush Goyal on Monday, 20 July 2026, urging the Centre to take strong measures to protect the state's aquaculture sector from a deepening price crisis in international shrimp markets.

Context

In his letter, CM Chandrababu Naidu highlighted that a surge in shrimp exports from Ecuador to major markets such as the United States, China, and Europe has caused a significant fall in global shrimp prices. This external supply pressure has squeezed returns for Andhra Pradesh's aqua farmers, who depend heavily on export-linked price signals for their livelihoods.

Andhra Pradesh is India's leading shrimp-producing state, contributing a dominant share of the country's seafood export earnings. Any sustained depression in international prices directly threatens farm-gate realisations for lakhs of aqua farmers across the state's coastal districts.

Policy Backdrop

The Chief Minister specifically flagged the current policy that permits export of fish meal — a critical input in shrimp feed — with a 5 per cent export incentive. He argued that this incentive is drawing domestic fish meal stocks into export channels, forcing domestic shrimp feed manufacturers to procure the ingredient at higher prices, which in turn raises the cost of production for aqua farmers already battered by falling shrimp prices.

The letter calls on Piyush Goyal to direct the Directorate General of Foreign Trade (DGFT) to regulate fish meal exports and ensure that domestic shrimp feed manufacturers' requirements are fully met before any surplus is permitted for export. The DGFT has historically used such notifications to calibrate export of key agri-inputs against domestic industry needs.

CM Naidu also requested that the Centre permit imports of GM soybean meal as an alternative protein source for shrimp feed, a measure that could ease raw-material costs for domestic feed makers and provide relief to aqua farmers. Discussions on limited GM soybean meal imports have recurred in policy circles whenever domestic protein-feed prices spike.

Stakeholders and Impact

The aquaculture sector in Andhra Pradesh supports a vast ecosystem of small and marginal farmers, feed manufacturers, hatcheries, and export processing units. A prolonged price slump, compounded by elevated input costs, risks pushing many farm households into financial distress and could reduce the state's seafood export competitiveness.

Domestic shrimp feed manufacturers stand to benefit directly from a rationalisation of fish meal export incentives, as it would stabilise their raw-material supply and pricing. The broader seafood export industry could also benefit if input costs are contained and farm-level output is sustained.

What's Next

The immediate next step is a response from Union Minister Piyush Goyal's office and a possible directive to the DGFT to review the fish meal export incentive structure. Any fresh DGFT notification revising export eligibility conditions for fish meal, or a policy clearance for GM soybean meal imports, would be closely watched by the industry.

The matter may also come up in the next meeting of the Board of Trade, where export-import calibration for agri-inputs is periodically reviewed. For Andhra Pradesh's aqua farmers, swift central action on both fronts — fish meal export curbs and GM soybean meal import permission — could provide meaningful relief in the current crop cycle.