Andhra Pradesh Chief Minister N. Chandrababu Naidu has urged the Centre to reconsider the revised taxes and excise duties to support tobacco farmers and address the challenges faced by aqua farmers. Naidu highlighted the difficulties encountered by Flue-Cured Virginia (FCV) tobacco farmers in the state, emphasizing the adverse impact of increased taxes on cigarettes that came into effect on February 1, 2026. The Chief Minister expressed concerns about the GST rate on cigarettes rising from 28% to 40% and the escalated excise duty, ranging from Rs 2,050 to Rs 8,500 per thousand cigarettes, affecting tobacco farmers’ interests.
Naidu pointed out that the market purchases have significantly slowed down due to the compounded tax increases, including GST, Excise Duty, and the National Calamity Contingent Duty. He highlighted the drop in the opening price of tobacco from Rs 280 to Rs 250 per kilogram between last year and this year’s auction, leading to losses for farmers as procurement volumes decrease. Additionally, the Chief Minister noted the challenges faced by exporters in the global market due to geopolitical conditions, putting at risk the livelihoods of around 43,000 tobacco farmers and numerous workers dependent on the sector in Andhra Pradesh.
In a separate letter to Minister for Commerce & Industry Piyush Goyal, Naidu addressed the crisis affecting aqua farmers and shrimp exports in the state. He raised concerns about the 50% tariff imposed by the United States on shrimp exports, resulting in a 60% tax burden on Indian exports. The Chief Minister highlighted the severe impact on aqua products exported from Andhra Pradesh, valued at Rs 25,000 crore, and the potential threat to 2.5 lakh aqua farming families and over 30 lakh workers’ livelihoods.
Naidu requested support measures, including an increase in working capital limits, a moratorium on interest payments, and exemptions from certain charges and taxes to mitigate losses for aqua farmers. He also sought negotiations with the United States to reduce tariffs and explore alternative export markets. Additionally, the Chief Minister appealed for the inclusion of prawns in the Indian Armed Forces’ dietary regimen, an increase in the Kisan Credit Card limit, and special train services to facilitate prawn transportation from southern to northern states.
