Amaravati, May 18 (IANS) Andhra Pradesh Chief Minister N. Chandrababu Naidu on Sunday urged the Centre to review the revised taxes and excise duties to protect the interest of tobacco farmers and also sought measures to help crisis-hit aqua farmers.

The Chief Minister has written separate letters to Union Finance Minister Nirmala Sitharaman and Minister for Commerce & Industry Piyush Goyal regarding the issues faced by tobacco farmers in the state.

Chandrababu Naidu highlighted the difficulties being encountered by Flue-Cured Virginia (FCV) tobacco farmers in Andhra Pradesh.

Naidu, whose Telugu Desam Party (TDP) is a key partner in the BJP-led NDA government at the Centre, pointed out that tobacco farmers are facing hardships due to the revised tax regime on cigarettes, which came into effect on February 1, 2026.

He stated that the interests of tobacco farmers are being adversely affected by the increase in the GST rate on cigarettes from 28 per cent to 40 per cent, coupled with a hike in excise duty—ranging from Rs 2,050 to Rs 8,500 per thousand cigarettes—depending on the category and length of the cigarette.

In his letter, the Chief Minister revealed that market purchases have slowed down significantly due to the impact of “tax-on-tax” increases, involving levies such as GST, Excise Duty, and the National Calamity Contingent Duty.

CM Chandrababu noted that while the opening price for a kilogram of tobacco stood at Rs 280 during last year’s auction, it has dropped to Rs 250 this year.

He highlighted that farmers are incurring losses as the companies purchasing tobacco have reduced their procurement volumes.

The CM explained that exporters are also facing difficulties against the backdrop of prevailing global geopolitical conditions.

The letter revealed that the livelihoods of nearly 43,000 farmers in the state, along with hundreds of thousands of workers dependent on this sector, are currently at risk.

In a letter, the Chief Minister noted that excessive taxation on legal cigarettes poses a risk of illicit tobacco products entering the market.

CM Chandrababu also wrote a separate letter to Piyush Goyal, regarding the crisis facing aqua farmers and shrimp exports in Andhra Pradesh.

He noted that the 50 per cent tariff imposed by the United States on shrimp exports is resulting in an overall tax burden of 60 per cent on Indian exports.

The Chief Minister stated that, as a result of this situation, aqua products exported from Andhra Pradesh are being severely impacted.

In the letter, the CM highlighted the risk of potential losses to the current aqua exports from AP, which are valued at Rs 25,000 crore.

The Chief Minister wrote that a situation has arisen where 2.5 lakh aqua farming families and over 30 lakh workers in the state face the threat of losing their livelihoods.

He informed the Central minister that prices for aqua products have currently dropped by 20–25 per cent even within the domestic market.

The Chief Minister mentioned that, to mitigate losses for aqua farmers, the state government has already reduced the price of shrimp feed by Rs 9 per kilogram, while electricity is being supplied at a subsidised rate of just Rs 1.50 per unit.

CM Chandrababu requested that working capital limits be increased to 30 per cent, and further sought a 240-day moratorium on interest payments, along with a temporary exemption from the 5 per cent interest charge and the 5 per cent GST.

The Chief Minister sought measures to be taken to negotiate with the United States for a reduction in tariffs, as well as to boost exports to alternative markets such as Russia, the European Union, and Australia.

He appealed to the Central Government to take a decision to include prawns in the dietary regimen of the Indian Armed Forces.

To provide support to aqua farmers, the CM requested that the Kisan Credit Card limit be increased to Rs 1 lakh and appealed for the provision of special train services to facilitate the transportation of prawns from the southern states to the northern states.

The Chief Minister wrote another letter to Union Finance Minister Nirmala Sitharaman, requesting the sanction of a corpus fund of Rs 100 crore through the NFDB for the establishment of a Prawn Producers Coordination Committee in Andhra Pradesh.

He requested the establishment of an additional Regional Fisheries Institute in Andhra Pradesh.

–IANS

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