A significant portion of the discussion focused on tobacco procurement, which plays a vital role in the rural economy of the state. HD Burley is cultivated extensively in districts such as Bapatla, Guntur, Palnadu, and Prakasam.
Published Jun 16, 2025 | 1:03 AM ⚊ Updated Jun 16, 2025 | 1:03 AM
Andhra Pradesh CM N Chandrababu Naidu with Union Commerce and Industry Minister Piyush Goyal
Synopsis: Andhra Pradesh Chief Minister N Chandrababu Naidu has urged the Union government to intervene and help address several challenges facing the state’s farmers. These include falling tobacco prices, low import duties on palm oil, high US tariffs on seafood exports, and the 12 percent GST on mango pulp.
Andhra Pradesh Chief Minister N Chandrababu Naidu has sought the intervention of Union Commerce and Industry Minister Piyush Goyal for the resolution of several pressing issues impacting the state’s agricultural and aquaculture sectors.
In a meeting held at his Undavalli residence in Amaravati on Sunday, 15 June, Naidu raised concerns related to tobacco procurement, import duties on palm oil, export challenges in the aquaculture sector, and the GST rate on mango pulp.
A significant portion of the discussion focused on tobacco procurement, which plays a vital role in the rural economy of the state.
The state is one of India’s leading producers of tobacco, particularly HD Burley, cultivated extensively in districts such as Bapatla, Guntur, Palnadu, and Prakasam.
However, farmers have been hit by falling tobacco prices, prompting intervention by the state government. Similarly, the palm oil sector is under strain due to reduced import duties, which have lowered domestic prices and eroded farm incomes.
The Chief Minister outlined the measures undertaken by the state government to support tobacco farmers amid falling market prices.
He informed the Union Minister that the state was procuring 20 million kg of tobacco at a cost of ₹300 crore through procurement centres set up in seven locations across Bapatla, Guntur, Palnadu, and Prakasam districts.
Naidu urged the Union government to share the financial burden by allocating ₹150 crore to the Tobacco Board. “Naidu urged the Union Minister to share the financial burden by half by allocating ₹150 crore to the Tobacco Board,” an official release said.
He also proposed legislative amendments aimed at strengthening the role of the Tobacco Board in regulating both the production and marketing of tobacco. These reforms, he argued, would help stabilise prices and shield farmers from market volatility.
The Chief Minister further raised concerns over the reduction of import duties on palm oil to 10 percent, describing it as a policy that had led to a drop in domestic prices, severely affecting palm oil farmers in the state.
He urged Goyal to reconsider the duty cut, pointing out that it runs counter to the objectives of the National Mission on Edible Oils, which seeks to promote domestic production and reduce dependence on imports.
The duty reduction, Naidu said, has made it increasingly difficult for farmers to secure fair prices, thereby threatening their financial stability and the broader agricultural economy of the state.
Issues affecting the aquaculture sector, a key contributor to Andhra Pradesh’s economy, were also discussed. The sector provides employment to eight lakh farmers and plays a major role in the country’s seafood exports.
Naidu expressed concern over the 27 percent tariffs imposed by the United States on Indian seafood exports, which have adversely impacted the livelihoods of aquaculture farmers in the state.
He urged the Union Minister to initiate dialogue with US authorities to bring down these tariffs. He stressed that reducing the tariff burden would enhance India’s export competitiveness and provide crucial relief to the farming community.
The Chief Minister emphasised the importance of diplomatic efforts to safeguard Andhra Pradesh’s position in the global seafood export market.
Naidu also flagged the 12 percent GST levied on mango pulp, a key horticultural product in Andhra Pradesh.
He appealed to Goyal to reduce the tax rate to 5 percent, stating that the existing rate hampers industrial growth and places a burden on both farmers and processors, particularly in mango-rich regions such as Chittoor.
Naidu noted that he had previously raised the matter with the Union Finance Minister and urged Goyal to expedite necessary action to support the horticulture sector.
(Edited by Dese Gowda)
