Andhra Pradesh CM seeks Rs 150 crore from Centre for tobacco procurement

Chief Minister Chandrababu Naidu urged the Centre to support Andhra farmers by funding tobacco procurement, revising palm oil import duties, addressing US tariffs on aqua exports, and reducing GST on mango pulp to benefit local industries

Amaravati: Andhra Pradesh Chief Minister N. Chandrababu Naidu on Sunday urged the Centre to provide Rs 150 crore for tobacco procurement, reduction of import duty on crude palm oil, and to hold talks with US authorities to reduce the 27 per cent tariff on aqua products.

The Chief Minister held a discussion with Union Commerce and Industry Minister Piyush Goyal regarding the challenges faced by farmers growing commercial crops and those involved in aquaculture.

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During his visit to the state, the Union Minister met the Chief Minister at the CM’s camp office. The two leaders discussed issues such as the procurement of HD Burley tobacco, the reduction of import duty on crude palm oil, tariffs imposed by the US on aqua exports, and GST reduction on mango pulp.

Chandrababu Naidu explained the current situation in the state and the hardships being faced by farmers. He also informed the Union Minister about the steps being taken by the state government to address these issues and sought the Centre’s cooperation.

The Chief Minister informed the Union Minister that farmers cultivating HD Burley and White Burley tobacco this season are facing severe difficulties due to falling prices. He said that the state government has already initiated procurement measures and has decided to procure 20 million kg of tobacco at an estimated cost of Rs 300 crore. He mentioned that seven procurement centres have been set up through the AP Markfed in Bapatla, Guntur, Palnadu, and Prakasam districts.

He requested that Rs 150 crore be provided through the Tobacco Board for procurement. The CM said tobacco has been cultivated in 1.31 lakh hectares this year—an increase over the previous year. He explained that reduced international demand for tobacco has led to price drops, adversely affecting farmers. CM Chandrababu Naidu urged for amendments to bring tobacco production and marketing fully under the Tobacco Board’s purview.

The CM highlighted that the reduction in import duty on crude palm oil is impacting domestic farmers. He pointed out that slashing the duty to 10 per cent is denying palm oil farmers fair prices. He urged the Centre to retain the earlier duty structure and noted that the duty cut could hamper the objectives of the National Mission on Edible Oils.

The CM told the Union Minister that 8 lakh aqua farmers in Andhra Pradesh are suffering due to tariffs imposed by the US on aqua exports.

He requested that the Centre hold talks with US authorities to reduce the 27 per cent tariff on aqua products. CM Naidu urged the Centre to take proactive steps to relieve the tariff burden and help aqua farmers recover from this crisis. He also pointed out that hatcheries, feed mills, processing units, and exporters are all affected by these tariffs.

The Union Minister was also urged to reduce GST on mango pulp from 12 per cent to 5 per cent. Naidu stated that GST on mango jelly (mamidi thandra) is currently 5 per cent, and a similar rate should apply to mango pulp as well. A GST reduction would benefit both mango farmers and the pulp industry.