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Time of India
5 days ago
- Business
- Time of India
Andhra Pradesh chief minister Chandrababu Naidu seeks funds for tobacco farmers
Vijayawada: Chief minister N Chandrababu Naidu has requested Union commerce minister Piyush Goyal to allocate ₹150 crore from the tobacco board to the state govt to manage the ongoing burley tobacco purchases. He said that the state govt is purchasing about 20 million kg of burley tobacco by spending nearly ₹300 crore as traders did not pick up the stocks leaving the growers into deep trouble. Union minister Goyal visited chief minister Chandrababu Naidu's residence in Undavalli on Sunday and held discussions on various issues. The chief minister explained that the state govt set up tobacco purchase centres at seven locations in Bapatla, Guntur, Palnadu, and Prakasam districts to avoid further delay causing distress among the farming community. "The state govt deployed state marketing agency-markfed to purchase burley tobacco from growers and it was expected to cost around Rs 300 crore. The state's burden would greatly come down if the Centre grants at least Rs 150 crore from the surplus revenues of the tobacco board," said Naidu. He had also requested the Union minister to bring burley tobacco production and marketing under the purview of the tobacco board with the amendment of tobacco board Act. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo He said that tobacco board is only regulating FCV tobacco while the burley growers are being misled by the private players resulting in crisis when there are no buyers. He observed that bringing the cultivation of white and black burley tobacco too under the tobacco board jurisdiction would be help regulate the crop properly. Chief minister urged Goyal to reconsider reducing the import duty on oil palm to 10%. He explained that reducing import duty is causing palm oil farmers in the state to receive unfair prices and suffer significant losses. Chief minister highlighted that the decision to reduce import duty could hinder the goals of the National Mission on Edible Oils (NMEO) set by the centre. He suggested the union minister to hold discussions with the US regarding the duties imposed on aqua exports. "The 27% duty imposed by the US on seafood is impacting eight lakh aqua farmers in Andhra Pradesh. The Centre should exert pressure on USA to reduce the burden to relieve aqua farmers," said Naidu. He had also urged Goyal to reduce GST on mango pulp from 12% to 5%. He said that the state govt had already brought the issue to the attention of the Union finance minister Nirmala Sitharaman.
India Gazette
5 days ago
- Business
- India Gazette
Andhra: CM seeks Centre's support for tobacco procurement, aqua exports, GST cut on mango pulp, reconsider import duties on palm oil
Amaravati (Andhra Pradesh) [India], June 15 (ANI): Andhra Chief Minister N Chandrababu Naidu met with visiting Union Commerce Minister Piyush Goyal here on Sunday to discuss the challenges faced by farmers of various commercial crops and the aqua sector in the state. The Union Minister was on an official visit to the state. Naidu's Telugu Desam Party (TDP) is a key ally in the NDA government at the Centre. The meeting covered key issues, including HD Burley tobacco procurement, import duties on crude palm oil, tariffs imposed by the United States on aqua exports, and GST on mango pulp, according to a statement by Andhra Pradesh's Directorate of Information and Public Relations (DIPR). CM Naidu explained the on-ground realities and hardships faced by farmers in the state and highlighted the steps being taken by the state government. He appealed for central support to address these challenges. The Chief Minister informed the Union Minister that farmers cultivating HD Burley and White Burley tobacco are facing severe price drops this season. To address this, the state government has already initiated procurement efforts. CM Naidu stated that a plan is in place to procure 20 million kilograms of tobacco at a cost of Rs 300 crore. Seven procurement centers have been established in Bapatla, Guntur, Palnadu, and Prakasam districts through the AP MARKFED. He requested that Rs 150 crore be provided through the Tobacco Board to support these efforts. He further informed that the tobacco cultivation area has increased to 1.31 lakh hectares this year compared to the previous year. With declining international demand, farmers are suffering losses. He urged the Centre to amend the law to bring tobacco production and marketing fully under the Tobacco Board's purview. The CM brought to the Minister's notice the difficulties faced by palm oil farmers due to the reduction of import duty on crude palm oil to 10 per cent. He noted that this has led to low prices for domestic farmers. CM Naidu urged that the earlier duty structure be reinstated, as the current cut would hinder the targets set under the National Mission on Edible Oils. Highlighting the impact of US tariffs, the Chief Minister explained that around 8 lakh aqua farmers in the state are incurring losses due to a 27 per cent tariff imposed on exports. He requested the Union Minister to initiate dialogue with US authorities to reduce the tariff burden. The Chief Minister emphasised that these tariffs are pushing farmers, hatcheries, feed mills, processing units, and exporters into crisis. He appealed for proactive intervention from the Centre to resolve the issue. CM Naidu also appealed to reduce the GST on mango pulp from 12 per cent to 5 per cent. He pointed out that mango toffee (mamidi thandra) is taxed at 5 per cent and suggested that mango pulp should be treated similarly. He added that reducing the GST would benefit both mango farmers and the pulp processing industry. He informed the Minister that this issue has already been raised with Union Finance Minister Nirmala Sitharaman. In response to CM Naidu's requests, Union Minister Piyush Goyal assured that the Centre would take positive steps to support farmers engaged in tobacco, palm oil, and mango cultivation, the Andhra Pradesh DIPR statement added. 'We had an in-depth discussion on a wide range of development initiatives in the state, with a special focus on industrial growth. Assured the Government of Andhra Pradesh of our full support as it spearheads the transformation in the lives of the people of the state,' the Union minister also wrote on X after the meeting. Talking to reporters later, the Union minister said he met officials of the Industrial Development Corporation, a national body, that is developing three industrial nodes in Andhra Pradesh. 'We also extensively development of all the three nodes, potential industries that we can attract, how we can speed up the development of the three nodes being set up in partnership with central government and Andhra Pradesh Government, and potentially what more we can do to attract different sectors, foreign direct investment and promote job generation in the state of Andhra Pradesh,' he said. He also apprised that the works for new campus of National Institute of Design (NID) has made a 'good progress'. NID is coming up in Kakinada. Talking about the Tobacco Board, which happens to be in Andhra Pradesh, Piyush Goyal said, 'I believe the Tobacco Board has also made very good progress -- with the farmers over the last four years, almost doubling their income.' He conceded that there are, however, some issues about excess production, which he said will have to be curtailed. He said he has directed his officials to make sure that excess production is disallowed. 'Otherwise these good prices are not sustainable and therefore I have directed the officials to make sure that excess production should no more be allowed and we should have production as per the approved plan, so that the prices can be maintained at a reasonable level, otherwise everybody will suffer,' Piyush Goyal told reporters. India has a prominent place in the production of tobacco in the world, and Andhra Pradesh is a major contributor. (ANI)
United News of India
5 days ago
- Business
- United News of India
AP CM seeks Rs 150 Cr support for HD Burley tobacco procurement
Vijayawada, June 15 (UNI) Andhra Pradesh Chief Minister N Chandrababu Naidu held a crucial discussion with Union Commerce and Industry Minister Piyush Goyal regarding the challenges faced by farmers growing commercial crops and those involved in aquaculture in Andhra Pradesh. During his visit to AP, the Union Minister met the Chief Minister at the CM's camp office here on Sunday. The two leaders discussed issues such as procurement of HD Burley tobacco, reduction of import duty on crude palm oil, tariffs imposed by the US on aqua exports, and GST reduction on mango pulp. Chief Minister Chandrababu Naidu explained the current situation in the state and the hardships being faced by farmers. He also informed the Union Minister about the steps being taken by the state government to address these issues and sought the Centre's cooperation. Mr. Naidu informed the Union Minister that farmers cultivating HD Burley and White Burley tobacco this season are facing severe difficulties due to falling prices, adding that the state government has already initiated procurement measures and has decided to procure 20 million kg of tobacco at an estimated cost of Rs 300 crore. He mentioned that seven procurement centres have been set up through the AP Markfed in Bapatla, Guntur, Palnadu, and Prakasam districts. He requested that Rs 150 crore be provided through the Tobacco Board for procurement. 'Tobacco has been cultivated in 1.31 lakh hectares this year, an increase over the previous year. The reduced international demand for tobacco has led to price drops, adversely affecting farmers,' Naidu explained to Piyush Goyal and urged for amendments to bring tobacco production and marketing fully under the Tobacco Board's purview. The Chief Minister highlighted that the reduction in import duty on crude palm oil is impacting domestic farmers and pointed out that slashing the duty to 10% is denying palm oil farmers fair prices. also urged the Centre to retain the earlier duty structure and noted that the duty cut could hamper the objectives of the National Mission on Edible Oils. The Chief Minister told the Union Minister that 8 lakh aqua farmers in Andhra Pradesh are suffering due to tariffs imposed by the US on aqua exports and requested that the Centre hold talks with US authorities to reduce the 27% tariff on aqua products. He appealed to the Centre to take proactive steps to relieve the tariff burden and help aqua farmers recover from this crisis. He also pointed out that hatcheries, feed mills, processing units, and exporters are all affected by these tariffs. urged the Union Minister to reduce GST on mango pulp from 12% to 5%. He stated that GST on mango jelly is currently 5%, and a similar rate should apply to mango pulp as well. A GST reduction would benefit both mango farmers and the pulp industry. He mentioned that this issue has already been brought to the attention of Union Finance Minister Nirmala Sitharaman. Union Minister Piyush Goyal responded positively to the Chief Minister's requests. He assured that appropriate steps would be taken to support farmers engaged in tobacco, palm oil, and mango cultivation. UNI DP GNK
The Hindu
5 days ago
- Business
- The Hindu
Naidu seeks Centre's help in tobacco procurement, easing U.S. tariff on aqua exports
: In a significant meeting aimed at addressing the concerns of Andhra Pradesh's farmers and exporters, Chief Minister N. Chandrababu Naidu held detailed discussions with Union Commerce and Industry Minister Piyush Goyal in Amaravati on Sunday. Mr. Goyal, who arrived to participate in a Tobacco Board meeting in Guntur, called on Mr. Naidu at this camp office. Mr. Naidu raised several critical issues affecting the State's agricultural and aquaculture sectors. These included the procurement of HD Burley tobacco, the impact of reduced import duties on crude palm oil, GST on mango pulp, and steep tariffs imposed by the United States on aqua exports. Stating that farmers cultivating HD Burley and White Burley tobacco were suffering due to falling prices this season, Mr. Naidu said the State government had already begun the procurement process and decided to purchase 20 million kg of tobacco at an estimated cost of ₹300 crore. Seven procurement centres had been set up through AP Markfed across Bapatla, Guntur, Palnadu, and Prakasam districts. He requested the Union Minister to see that the Tobacco Board bears ₹150 crore of this expenditure. This year, 1.31 lakh hectares had been cultivated with tobacco, which was higher than the previous year. The international market demand has dropped, leading to price crashes that are impacting farmers, he said. Mr. Naidu also urged the Union Minister to consider legislative amendments to bring tobacco production and marketing fully under the control of the Tobacco Board, ensuring better price stabilisation and farmer protection. Expressing concern over the reduced import duty on crude palm oil, the Chief Minister highlighted that lowering the duty to 10% is adversely impacting domestic farmers by suppressing prices. He urged the Centre to revert to the previous policy framework and warned that the current move could undermine the objectives of the National Mission on Edible Oils. Mr. Naidu also brought up the 27% tariff imposed by the United States on Indian seafood exports, which is affecting nearly 8 lakh aqua farmers in Andhra Pradesh. He appealed to the Union Minister to initiate diplomatic talks with the U.S. to ease the tariff burden and protect the livelihoods of those dependent on aquaculture. 'These steep tariffs have thrown hatcheries, feed mills, processing units, and exporters into crisis,' he said. GST on mango pulp Seeking relief for mango farmers and the food processing industry, the Chief Minister requested a reduction in GST on mango pulp from 12% to 5%. He pointed out that mango leather (Aam Papad) already attracts a 5% GST and advocated for parity in treatment to benefit both farmers and pulp manufacturers. Mr. Naidu said that he had already raised this issue with Union Finance Minister Nirmala Sitharaman. Mr. Piyush Goyal responded positively to the Chief Minister's requests and assured that the Centre would actively consider measures to support farmers and exporters from Andhra Pradesh.
Mint
04-06-2025
- Business
- Mint
Mint Primer: Rise and fall of edible oil duties: Who benefits?
More than eight months after imposing a 20% basic customs duty on crude soybean, palm and sunflower oil, the government has reduced this duty by 10%. What is the move aimed at and what will be the impact on fast moving consumer goods (FMCG) companies? Also Read | GST mop-up: The signals for India's economy & taxes What happened in September last year? That's when the government increased the basic customs duty on various edible oils (crude and refined) to protect domestic producers from cheap imports and encourage local cultivation of crops. Effective 14 September, the basic customs duty on crude soybean, palm and sunflower oil was raised from 0 to 20%, making the effective duty on crude oils as high as 27.5%. Similarly, the basic custom duty on refined palm, sunflower and soybean oil was raised to 32.5% from 12.5%, with an effective duty rate of 35.75%. This added to the overall household inflation as manufactures passed on higher prices to consumers. Also Read | Who is liable if a friendly chatbot 'abets' suicide? Why were the duties hiked? India relies heavily on edible oil imports, which meets 57% of its demand. The Centre attributed its decision to increased global production of oilseeds and resultant falling international prices. This glut resulted in cheap imports flooding India, pushing down prices for domestic farmers. Raising the cost of imported edible oils, the thinking ran, would lead to increased procurement, thus supporting more production and ensuring fair compensation for farmers. Additionally, a National Mission on Edible Oils–Oil Palm was launched in October to further support domestic oilseed production. Also Read | YouTubers vs ANI: Fair-use in the spotlight What happened as a result of the government move? Following the hike, packaged oil firms like Marico and AWL Agri Business Ltd passed on prices to consumers, raising household spending on essentials. Packaged food makers also faced edible oil inflation. For instance, palm oil prices surged 43% in the December quarter, leading biscuit-maker Britannia Industries to implement price hikes totalling ₹100 crore in that quarter. How did the Centre respond? Effective 31 May, the basic customs duty on the three crude oils was cut from 20% to 10% in a bid to stabilize edible oil prices and boost demand. The effective import duty on these three products, which includes basic customs duty and additional fees, now stands at 16.5%, down from the previous 27.5%. Meanwhile, the basic customs duty on refined oils remains unchanged at 32.5%, a decision industry bodies such as the Solvent Extractors' Association of India believe will create a level playing field for domestic refiners. What does the cut mean for FMCG firms? It is expected to lower edible oil prices for consumers in the next 25-30 days as companies pass on the benefits. It should also ease the pressure of commodity costs for packaged food companies. Key beneficiaries include Bikaji Foods, Britannia Industries, Nestle India and ITC's food business, according to Nuvama Institutional Equities. Analysts also expect improved margins for FMCG firms over the next two quarters. Other companies could also benefit if palm oil derivatives, used in soaps and detergents, become cheaper.
