Andhra CM Urges FM Sitharaman to Stabilise Prices of Shrimp Feed Raw Materials

 Andhra Pradesh Chief Minister N Chandrababu Naidu on Friday urged Union Finance Minister Nirmala Sitaraman to adopt policy measures to stabilise the prices of raw materials used in shrimp feed production, saying the sharp rise in input costs is hurting aquaculture farmers and seafood exports.

During a meeting with Sitharaman at the CM's camp office today, Naidu said the aquaculture sector provides livelihood to lakhs of farmers, workers, processing units, exporters, hatcheries, feed manufacturers and several other allied industries.

Even a minor disruption in feed availability has a direct impact on aquaculture farmers' livelihoods and export performance, he said, according to an official release.

Citing the representations made by Shrimp Feed Manufacturers Association, the Chief Minister said shrimp feed prices increased significantly between January and April in 2026, pushing production costs up by more than 20 percent.

“Fish feed prices increased from ₹1.55 lakh to ₹2.4 lakh per tonne, fish oil from ₹2.8 lakh to ₹4.4 lakh per tonne, and soy lecithin from ₹68,000 to ₹1.1 lakh per tonne. Together, these increases have added nearly ₹25,000 to the cost of producing one tonne of shrimp feed,” said Naidu.

He requested the Centre to promote the domestic market for shrimp and aquaculture products, encourage Farmer Producer Organisations (FPOs) and strengthen market linkages.

He also called for an institutional mechanism to protect the sector from fluctuations in global demand.

Similarly, the CM sought financial assistance through the National Fisheries Development Board (NFDB) for establishing the Andhra Pradesh Prawn Producers Coordination Committee with a ₹100-crore corpus fund.

Naidu urged the union government to negotiate with the United States to reduce tariffs on Indian seafood exports, noting that Indian shrimp exports already face a 5.77 percent countervailing duty and could be subjected to anti-dumping duties.

He warned that the proposed reciprocal tariffs by the US administration would severely affect Andhra Pradesh, which accounts for nearly 80 percent of India's shrimp exports, said the press release.

Naidu requested the Centre to seek either the removal of the existing 30 percent customs duty on seafood exports or an exemption in the interest of farmers.

He also sought support to identify and expand access to alternative international markets for aquaculture products.

Further, Naidu informed the Finance Minister that placing tobacco products in the highest GST slab has adversely impacted tobacco farmers, ultimately leading to lower procurement of the leaf.

Industry stakeholders have expressed concern over the heavy excise duty on cigarettes, which is further subjected to GST, he said.

Naidu underlined that manufacturers in Andhra Pradesh and Karnataka have reduced procurement, resulting in this year's auction process in the state significantly slowing down than the last season.

Against an estimated production of 230 million kilograms, only 34 million kilograms have been procured so far.

According to Naidu, reduced procurement is affecting farmers, agricultural labourers, auction workers, transport operators and MSMEs.

The CM highlighted that the widening price gap between legal cigarettes and illicit tobacco products could encourage smuggling and tax evasion, urging the Centre to take immediate measures to safeguard tobacco farmers.

Further, he sought central support for the Rayalaseema Integrated Horticulture Development Plan, observing that Kurnool, Anantapur, Kadapa, Chittoor, Sri Sathya Sai, Nandyal, Annamayya, Tirupati, Prakasam and Markapuram districts together account for 55 percent of the state's horticultural production.

Naidu said the state aims to increase horticulture cultivation area to 14.41 lakh hectares and raise production to 435 lakh tonnes by 2030.

He said the development of 201 horticulture clusters with an investment of ₹14,906 crore would benefit nearly nine lakh farmers, among other initiatives.

Moreover, the CM invited Sitaraman to participate in the launch of the Horticulture Hub on August 6 and 7, and proposed the establishment of an 'Indian School of Agriculture' (ISA) as part of the Rayalaseema Integrated Horticulture Development Plan in partnership with Reliance Industries.

The Chief Minister said the state government will sign an MoU with Reliance Group on August 3 and land for the institution has already been identified.