The Andhra Pradesh government has raised some worries about the way farmers are now running into more and more troubles in the tobacco and aqua sectors. Chief Minister N. Chandrababu Naidu said to the Central Government that new tax changes and shifting international tariffs are putting serious financial pressure on farmers and exporters across the whole state.
He also mentioned that a lot of families rely on these two sectors for their income, and for work opportunities too. As per the Chief Minister, policy help has to come right away so that farmers as well as export markets can stay protected.
The state government said tobacco and aqua farmers are facing losses, mainly due to higher taxes and other trade related challenges. These things are then hitting production exports and also disturbing market balance.
Chief Minister Chandrababu wrote separate letters to Union Finance Minister Nirmala Sitharaman and Union Commerce Minister Piyush Goyal. In those letters, he asked for urgent attention and intervention from the Central Government.
He warned that if policy action gets delayed even a bit, it could trouble hundreds of thousands of families that are connected to farming, processing, transport, and exports.
The Chief Minister explained that tobacco farmers are feeling heavy financial strain after the revised tax arrangement took effect from February 1, 2026.
The state government added that the increased tax load has cut down profitability for farmers. Many producers, he said, are now finding it hard to manage cultivation costs and the uncertainty of where and how their produce will sell.
In the letter sent to the Finance Ministry, the state government asked for a review of the revised taxation approach and excise duties tied to the tobacco space. They believe that some policy corrections could help steady the market and reduce the stress being felt by farmers.
The aqua sector is also dealing with big issues because of international trade measures. The Chief Minister said a 50% tariff imposed by the United States has sharply increased the tax load on seafood exports and it’s becoming harder day by day.
He further noted that the overall burden, has now touched almost 60% , which is creating real problems for exporters from Andhra Pradesh. The state supplies a huge volume of shrimp, and also other seafood products, to foreign markets.
As per the government, exports valued at around ₹25,000 crore could see serious risk if this tariff situation keeps going like this. Andhra Pradesh also warned that workers linked to aquaculture and allied work could lose their jobs.
The Andhra Pradesh government urged the Centre to sit with the United States and try to lower the tariffs impacting seafood exports.
The Chief Minister also suggested pushing sales to other destinations like Russia, the European Union, and Australia. The state feels that wider market entry could reduce reliance on just one export destination, instead of being stuck.
Along with that, the government asked for a review of the current tax arrangements and it called for better financial backing for the industries that are affected right now.
To help aqua farmers and exporters through the current phase, the state government has suggested several support steps.
One idea is to raise the working capital limit to 30% so businesses can handle day to day operational costs more easily. The government also requested raising the Kisan Credit Card limit for aqua farmers up to ₹1 lakh.
Another recommendation involved including shrimp in the dietary supply system of the Armed Forces. The state believes this step could help increase domestic demand for seafood products.
Tobacco and aquaculture are important sectors in Andhra Pradesh’s rural economy. Many farmers, laborers, exporters, and small businesses depend on these industries for income.
The state government stated that continued financial pressure could affect employment and export earnings across several districts. It emphasized that timely support from the Central Government would help protect livelihoods and maintain economic stability.
