Naidu's plea to Centre to promote domestic consumption of aqua products, explore alternative markets

Responding to SOS by the aqua industry, Andhra Pradesh Chief Minister N. Chandrababu Naidu has appealed to the Centre to support aqua farmers in the State.

The aqua farmers are facing severe distress due to US-imposed tariffs. Andhra Pradesh is considered the main aqua hub of India due to popularity of white-leg shrimp, in high demand in overseas markets.

Andhra Pradesh accounts for 80% of the country’s shrimp exports and 34% of marine exports, with exports valued at around ₹21,246 crore annually. About 2.5 lakh aqua farmer families and 30 lakh people dependent on allied sectors are in difficulty.

Naidu urged the Union Government to take decisions at the national level to protect aqua farmers from losses and sought measures to increase domestic consumption of aqua products.

In separate letters to Union Finance Minister Nirmala Sitharaman, Commerce & Industry Minister Piyush Goyal, and Fisheries Minister Rajeev Ranjan Singh, he wanted immediate intervention.

The Chief Minister requested the Finance Minister to look into issues such as GST and financial relief, the Commerce & Industry Minister to pursue agreements with other countries in the aqua sector, and the Fisheries Minister to focus on expanding the domestic market.

Naidu pointed out that aqua farmers and families dependent on the sector in Andhra Pradesh are facing hardships. He also explained the measures currently being taken by the State Government.

The Chief Minister stated that US tariffs have had the greatest impact on shrimp exports. Losses are estimated at ₹25,000 crore, with about 50% of export orders canceled. Nearly ₹600 crore in tariff burden has fallen on about 2,000 containers being exported.

Naidu noted that the State Government has already initiated relief measures — for example, after discussions with feed producers, aqua feed MRPs have been reduced by ₹9 per kg, and subsidised supply of transformers is also being considered.

Moratorium on loan interest

The Chief Minister emphasised in his letters that, along with State Government support, Central assistance is essential to sustain aqua farmers. He requested bank support for exporters and aqua companies, including a 240-day moratorium on loan and interest repayments, interest subsidies, and a temporary waiver of the 5% GST on frozen shrimp.

In addition, he urged the Centre to focus on diversifying export markets beyond the US. He suggested entering into Free Trade Agreements (FTAs) with the European Union, South Korea, Saudi Arabia and Russia to boost exports.

The Chief Minister also sought interim financial support for exporters, clarity on tariff/tax relief schemes, and noted that exporters were ready to supply seafood to the EU.

The Chief Minister stressed the need to expand the domestic aqua market and requested a ₹100-crore corpus fund, establishment of cold storages, hygienic fish and seafood markets.

He said that the State Government is ready to set up the Andhra Pradesh Shrimp Producers Coordination Committee to facilitate direct farmer-to-market supply chains.