Andhra CM Seeks Loan Moratorium, ₹100 Cr Fund to Shield Aqua Sector from US Tariffs

Andhra Pradesh Chief Minister N. Chandrababu Naidu, in a bid to mitigate the damage caused by the sharp rise in US tariffs on Indian imports, has requested a moratorium on loans and interest payments. The minister has sought financial support of Rs. 100 crore corpus fund for exporters, mainly in the aqua sector. He has also asked for cold storage facilities to help the sector.

Exports Under Pressure

The CM noted that 50% of export orders of shrimp have been cancelled, amounting to losses of about Rs. 25,000 crores because of the latest tariffs imposed by the United States. Additionally, the tariff burden of Rs. 600 crores has deeply impacted the exports of 200 containers.

Call for Market Diversification

Seafood consumption in India is about 12-13 kg per person compared to the global average of 20-30 kg. Taking this into consideration, in his letters addressed to the finance minister Nirmala Sitharaman, commerce and industry minister Piyush Goyal, and fisheries minister Rajeev Ranjan Singh, CM Naidu stressed on diversifying the exports beyond the US and emphasised executing Free Trade Agreements (FTAs) with the European Union, South Korea, the Middle East and Russia to boost exports.

Relief Measures Proposed

In the letters, he made a case for bank support for exporters and aqua companies in the form of a 240-day moratorium on loan and interest repayments and interest subsidies. He also requested a temporary waiver of the 5% goods and services tax (GST) on frozen shrimp. The minister also asked the centre to facilitate the transportation of aqua products from southern India to other areas of the country via dedicated trains.

Boosting Domestic Demand

To promote domestic consumption of seafood, Andhra Pradesh has already taken bold steps. The MRP of aqua feed has been reduced by Rs.9 per kg. The state is also mulling over subsidising the supply of transformers. Additionally, Naidu also suggested running awareness campaigns to promote seafood consumption especially since they are rich source of protein.

The state of Andhra Pradesh accounts for 80% of the country’s shrimp exports and 34% of marine exports, with shipments valued at about Rs 21,246 crore annually.

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