In a significant meeting held on Sunday, Andhra Pradesh’s Chief Minister N Chandrababu Naidu met with Union Commerce Minister Piyush Goyal to discuss the pressing issues faced by farmers in the state’s agricultural and aqua sectors. With a focus on various challenges, their dialogue covered a range of topics critical to the livelihood of farmers in Andhra Pradesh. This meeting is part of Goyal’s official visit to the state, underscoring the government’s commitment to address regional agricultural concerns.
One of the primary issues raised by CM Naidu was the procurement of HD Burley tobacco. Farmers cultivating this variety have been grappling with steep price decreases this season, leading to financial distress. To mitigate these hardships, the state government has initiated procurement efforts to secure 20 million kilograms of tobacco at a projected expenditure of Rs 300 crore. Seven procurement centers have already been established in key areas like Bapatla, Guntur, Palnadu, and Prakasam districts to facilitate this process.
In urging for further support from the Centre, Naidu requested Rs 150 crore through the Tobacco Board to enhance these procurement efforts. The situation highlights the ongoing challenges in the tobacco sector, where international demand has waned and local farmers feel the pinch. Naidu proposed that the Centre consider amending existing laws to place both tobacco production and marketing under the full oversight of the Tobacco Board to help stabilize the industry.
The discussion did not stop at tobacco. CM Naidu also turned the focus to the issues plaguing palm oil farmers. Since the import duties on crude palm oil were reduced to 10 percent, domestic prices have taken a hit, leaving Indian farmers in a vulnerable position. Naidu passionately urged the government to revert to the previous duty structure, explaining that these changes threaten the goals outlined under the National Mission on Edible Oils.
Another pressing topic was the impact of U.S. tariffs on aqua exports. Naidu pointed out that approximately 800,000 aqua farmers in Andhra Pradesh are suffering losses due to hefty tariffs imposed by the United States, which stand at 27 percent. This financial burden extends beyond individual farmers to hatcheries, feed mills, processing units, and exporters, pushing them into a crisis. CM Naidu requested Goyal’s assistance in opening dialogue with U.S. authorities to alleviate these tariff burdens.
In addition to these crucial sectors, Naidu urged for a reduction in the Goods and Services Tax (GST) on mango pulp from 12 percent to 5 percent. He highlighted the inconsistency in the tax structure, noting that mango toffee is taxed at only 5 percent. By suggesting parity in the taxation process, Naidu aimed to support both mango farmers and the processing industry, which could stimulate growth in this sector.
The appeal to the Union Minister did not go unanswered. Piyush Goyal committed to taking positive steps to assist farmers involved in tobacco, palm oil, and mango cultivation. He expressed a strong support for Andhra Pradesh’s development initiatives while recognizing the need for balance and sustainability in agricultural production.
Following their discussions, the Union Minister acknowledged the need for the Tobacco Board to address excess production. He emphasized that without controlling surplus production, farmers could face unsustainable price levels, necessitating a balance in output to maintain reasonable prices for all stakeholders.
In an interesting development, Goyal also touched upon broader initiatives in the state, such as the development of three industrial nodes in Andhra Pradesh. He highlighted efforts to attract potential industries and foreign direct investment, a move aimed at boosting job creation within the region. Furthermore, he mentioned the good progress of the new campus of the National Institute of Design (NID) coming up in Kakinada, which indicates a promising educational investment for the state.
This meeting between CM Naidu and Union Minister Goyal marks an important step toward addressing the challenges faced by farmers in Andhra Pradesh, reaffirming the need for ongoing dialogue and support from the Central Government. With major sectors like tobacco, palm oil, and mango cultivation at the forefront, proactive measures will be essential in transforming the agricultural landscape and ensuring farmers can thrive in a competitive market.
