2 weeks ago
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Chief Minister N. Chandrababu Naidu has written abstracted letters to Union Finance Minister Nirmala Sitharaman and Union Commerce and Industry Minister Piyush Goyal connected the hardships being faced by Flue-Cured Virginia (FCV) baccy farmers successful Andhra Pradesh due to the fact that of the revised taxation argumentation connected cigarettes.
The Chief Minister said the revised taxation regime, effectual from February 1, 2026, had adversely affected baccy farmers successful the State. He said the summation successful GST connected cigarettes from 28% to 40%, and a steep hike successful excise work ranging from ₹2,050 to ₹8,500 per 1,000 cigarettes depending connected class and length, was affecting the interests of baccy growers.
Mr. Naidu said the cumulative interaction of GST, excise duty, and National Calamity Contingent Duty had slowed marketplace purchases, creating uncertainty successful the baccy sector. He said the opening auction terms of baccy had fallen from ₹280 per kg past twelvemonth to ₹250 per kg this season.
The Chief Minister besides said that tobacco-buying companies had reduced procurement volumes, causing losses to farmers. Exporters were facing difficulties due to the fact that of prevailing geopolitical conditions.
He warned that the livelihoods of astir 43,000 baccy farmers and lakhs of workers babelike connected the assemblage were astatine risk. Mr. Naidu cautioned that excessive taxation connected ineligible cigarettes could pb to an summation successful illicit baccy products successful the market, and urged the Centre to reappraisal the revised taxation argumentation and excise work to support farmers’ interests and stabilise the market.
Exports of baccy and its products recorded a steep diminution successful April 2026 compared to the erstwhile year, according to a caller Press Information Bureau (PIB) report. Tobacco exports stood astatine ₹1,690 crore successful April 2025 and ₹1,102 crore successful April 2026, a 34.81% decline.
Aqua assemblage besides flagged
Mr. Naidu has separately written to the Union Ministers connected the situation facing the State’s aquaculture assemblage aft the U.S. imposed a steep tariff connected shrimp imports from India. He said the tariff had resulted successful a astir 60% taxation load connected Indian exports, severely affecting aqua products exported from Andhra Pradesh.
“The tariff load connected shrimp exports is severely affecting aquaculture farmers and exporters successful Andhra Pradesh and putting exports worthy astir ₹25,000 crore astatine risk,” helium said successful the letter, according to a release.
Mr. Naidu said astir 2.5 lakh aquaculture husbandman families and much than 30 lakh workers babelike connected the assemblage were facing a livelihood crisis. Prices of aquaculture products successful the home marketplace had already declined by up to 25% amid the crisis, helium said.
The State authorities had reduced shrimp provender prices by ₹9 per kg and was supplying energy to the aquaculture assemblage astatine ₹1.50 per portion to enactment farmers, helium said. Mr. Naidu sought an summation successful moving superior limits by 30%, a 240-day moratorium connected involvement payments, and impermanent exemption from 5% involvement and 5% GST.
Mr. Naidu besides urged the Centre to clasp talks with the U.S. to trim tariffs and to grow exports to alternate markets specified arsenic Russia, the European Union, and Australia. He requested that shrimp beryllium included successful the nutrient paper of the Indian Armed Forces, that the Kisan Credit Card bounds beryllium raised to ₹1 lakh for aquaculture farmers, and that a peculiar railway installation beryllium acceptable up for transporting shrimp from confederate to bluish States.
(With inputs from PTI)
