Andhra CM requests federal assistance to alleviate US tariff impact on the state's aquaculture industry.
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Andhra Pradesh Chief Minister N. Chandrababu Naidu is urgently seeking the central government's assistance to mitigate the severe impact of recently imposed tariffs by the United States on shrimp imports, which are significantly affecting the state's aquaculture sector.

Andhra Pradesh is a major hub for aquaculture in India, accounting for 80% of the nation's shrimp exports and 34% of its marine exports, with an annual value of approximately ₹21,246 crore. The newly imposed tariffs by the U.S. threaten the livelihoods of 2.5 lakh aquaculture farmer families and 30 lakh people dependent on allied activities in the state. The sector is facing estimated losses of ₹25,000 crore, with approximately 50% of export orders being canceled and 2,000 containers facing a tariff burden of about ₹600 crore.

In response to this crisis, Chief Minister Naidu has written to Union Finance Minister Nirmala Sitharaman, Commerce and Industry Minister Piyush Goyal, and Fisheries Minister Rajeev Ranjan Singh, requesting immediate policy interventions at the national level.

The Chief Minister has proposed several measures to alleviate the distress faced by aqua farmers and exporters:

  • Moratorium on Loan Repayments: A 240-day moratorium on loan and interest repayments for aqua exporters and companies.
  • GST Waiver: A temporary waiver of the 5% GST on frozen shrimp.
  • Interest Subsidies: Subsidies on interest to reduce the financial burden on farmers.
  • Corpus Fund: Establishment of a ₹100 crore corpus fund to promote the domestic market for marine products.
  • Infrastructure Development: Setting up cold storage facilities and hygienic fish and seafood markets.

To reduce reliance on the U.S. market, Naidu has urged the Commerce Ministry to pursue Free Trade Agreements (FTAs) with the European Union, South Korea, Saudi Arabia, and Russia. He also mentioned that exporters are prepared to meet the demand in the EU.

The Andhra Pradesh government is also ready to establish the Andhra Pradesh Shrimp Producers Coordination Committee to streamline the supply chain from farmers to markets.

Additionally, the Chief Minister has requested the central government to promote seafood consumption within India, where the per capita intake is only 12–13 kg, compared to the global average of 20–30 kg. He has also proposed dedicated trains for transporting aqua products to North India and strengthening cold-chain and packaging infrastructure.

The state government has already taken steps to provide some relief, including a reduction of ₹9 per kg in aqua feed MRPs after discussions with feed producers. Subsidized supply of transformers is also under consideration.

Special Chief Secretary of Agriculture Budithi Rajasekhar addressed the Collectors' Conference, emphasizing the mounting pressure on shrimp farmers and exporters due to the U.S. tariffs. He suggested interventions at the district level to mitigate the impact, including measures to reduce shrimp cultivation costs by at least 6% by targeting feed expenses, which constitute approximately 40% of the cultivation costs. Rajasekhar also raised concerns regarding the increasing use of antibiotics and stressed the need for strict monitoring to maintain the credibility of Andhra's exports in the global market.


Written By
Kavya Reddy is a dynamic journalist with a passion for uncovering compelling stories and a keen interest in sports. She brings a fresh perspective and a commitment to accurate, impactful reporting. Kavya is particularly interested in socio-economic issues and local community narratives, eager to use her skills to shed light on underreported topics and give a voice to diverse perspectives, all while staying connected to her love for sports.
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