Naidu raises concerns over US tariffs, their impact on Andhra's aquaculture farmers

Hyderabad: In a first among NDA partners, TDP supremo and Andhra Pradesh Chief Minister N Chandrababu Naidu has raised concerns about US President Donald Trump's announcement of a 25 per cent tariff on Indian exports and its potential impact on the state's aquaculture farmers.

He indicated that his government is developing strategies to reduce the burden of these tariffs on Andhra Pradesh's aqua farmers.

While addressing farmers in Prakasam district on Saturday during the launch of the PM KISAN - Annadata Sukhibhava scheme, Naidu assured state government assistance to aquaculture farmers who may face challenges due to the new American tariffs.

The aquaculture sector is crucial to Andhra Pradesh's economy, with more than 10 lakh families depending directly and indirectly on the shrimp industry. Aquaculture operations span approximately two lakh hectares across the coastal districts of East and West Godavari, Krishna, Guntur, and Nellore.

India exports shrimp to multiple international markets, including Japan, the USA, the Middle East, the European Union, and Southeast Asia. During the 2023-24 fiscal year, India exported marine food products worth Rs 22,236 crore ($2.55 billion) to the US, with shrimp accounting for 92 per cent of these exports. Notably, approximately 75 per cent of India's total shrimp exports originate from Andhra Pradesh.

"We are supporting aqua farmers by providing electricity at Rs 1.50 per unit. The increase in tariffs by America will burden the aqua farmers in the state. We have taken this into consideration," said Naidu.

"I have called a meeting with the aqua farmers. They will meet me in a day or two, and we will discuss formulating an action plan to lessen that burden," he added.

This is not Naidu's first intervention on the issue. In April, he wrote to Union Commerce Minister Piyush Goyal, urging the Centre to engage with the US administration to secure shrimp's inclusion in the tariff exemption list.

While almost all current shrimp shipments have been dispatched to the US and other destinations, farmers are particularly worried about the upcoming winter harvest, for which preparations begin shortly.

Shrimp pricing is determined by size rather than weight, with products graded according to their count per kilogram. A lower count per kilogram indicates larger shrimp, which command higher market prices. Industry experts believe that larger shrimp offer superior taste compared to smaller varieties.

Shrimp cultivation is highly power-intensive, as the ponds require continuous aeration to maintain adequate oxygen levels for the shrimp. A one-acre pond typically needs nearly 10 horsepower, consuming approximately 7,700 units of electricity monthly.

At regular electricity rates of Rs 3.50 per unit, farmers would need to spend at least Rs 26,000 per month on electricity alone. The state government's subsidised rate of Rs 1.50 per unit significantly reduces this operational burden, highlighting the importance of continued government support in the face of international trade challenges.