Andhra Pradesh Chief Minister N Chandrababu Naidu has appealed to the Union Government to address the twin crises being faced by aqua and tobacco farmers. 

While the aqua sector is struggling with new US tariffs and falling domestic prices, the tobacco industry faces a sharp decline in sales and pricing following an increase in cigarette GST from 28er cent to 40 per cent and a hike in Excise Duty.

Together, these challenges threaten the livelihoods of lakhs of farming families and labourers across the state. He asked the Government to rationalise the tax structure to resolve the issue.

Naidu said aqua farmers are facing a major crisis after the United States imposed tariffs on Indian prawns. This could adversely impact the ₹25,000-crore aqua sector in the State.

This, in turn, could affect the livelihood prospects of over 2.5 lakh aqua-farming families and over 30 lakh labourers working in the sector.

“In the domestic market, the prices of aqua produce fell by 20-25. On our part, we reduced the prices of prawn feed by ₹9 a kilogram. We are providing power at ₹1.50 a unit to provide some relief to the farmers,” he said.

He appealed to the Commerce Minister to reduce the working capital limits by 30 per cent and to announce an eight-month moratorium on interest payments. He also called for a temporary concession of 5 per cent Goods and Services Tax.

Besides engaging in talks with the US to reduce tariffs, the Government should take measures to increase aqua product exports to alternative markets such as the European Union, Russia and Australia.

He also appealed to the Union Government to include prawns in the menu for the Armed Forces.

“We need to increase the credit limit under the Kisan Credit Cards to Rs one lakh and introduce dedicated cargo trains to supply prawns from the South to the North.

The Chief Minister asked the Government to sanction funds from the National Fisheries Development Board (NFDB), with a corpus of Rs 100 crore, to set up a Prawn Producers Coordination Committee in Andhra Pradesh.

Tobacco issue

In a separate letter, he expressed concerns about the sharp increase in cigarette taxes (Goods and Services Tax) to 40 per cent from 28 per cent, effective from February 1.

Besides, Excise Duty was also increased to ₹8,500 from ₹2,050 on 1,000 cigarettes (depending on the category and the length of the stick), resulting in a serious fall in tobacco sales.

“The price fell to ₹250 a kg this year from Rs 280 last year. Traders cut down on their purchases. Exporters, too, are facing challenges because of the geopolitical challenges,” he said.

This crisis threatens the livelihood of over 43,000 tobacco farmers and lakhs of people dependent on the sector.

He cautioned that if the tax burden went up on legal cigarettes, it would pave the way for the flooding of illegal tobacco products.

Published on May 18, 2026