Chief Minister Chandrababu Naidu has asked Union Commerce and Industry Minister Piyush Goyal to allocate Rs 150 crore for tobacco purchases in AP through the Tobacco Board. He suggested amending the law to regulate issues like tobacco production and marketing through the Tobacco Board.
He said that the reduction of oil palm import duty to 10 percent should be reconsidered. The CM suggested that discussions should be held with the US regarding the duties imposed on aqua exports. The CM appealed to this effect to reduce GST on mango pulp from 12 to 5 percent.
Union Minister Piyush Goyal met Chief Minister Chandrababu Naidu for about two hours at his Undavalli residence on Sunday. There was a long discussion between the two leaders on burley tobacco purchases, reduction in import duty on palm oil, aqua exports, and reduction in GST on mango pulp.
The CM informed the Union Minister that the state government is purchasing 20 million kg at a cost of Rs 300 crore due to the decline in tobacco prices. He explained that tobacco purchasing centers have been set up at seven places in Bapatla, Guntur, Palnadu and Prakasam districts.
He appealed to the Tobacco Board to bear Rs 150 crore of the Rs 300 crore spent by the state government on tobacco purchases. The CM explained to the Union Minister that due to the reduction in oil palm import duty, palm oil farmers in the state are not getting the right price and are suffering serious losses.
He reminded that the decision to reduce the import duty will also be troublesome for the objectives of the National Mission on Edible Oils set by the Center. CM Chandrababu revealed that the 27 percent duty imposed by the US on seafood is affecting 8 lakh aqua farmers in AP. He asked for initiatives to be taken to reduce this burden on AP aqua farmers.
The CM explained to Piyush Goyal that the issue of GST reduction on mango pulp has already been brought to the attention of the Union Finance Minister. After the meeting with the CM, Piyush Goyal went to the Guntur Tobacco Board office and met with the officials and NICDC there. They discussed the problems of farmers and the issue of tobacco purchases.
