AP Seeks GST Cut on Raw Tobacco, Stronger Central Support for Agriculture
The delegation urged the Centre to take an early decision on the proposal
Vijayawada: The state government has urged the Centre to reduce the Goods and Services Tax (GST) on raw tobacco from 40 per cent to 28 per cent and sought greater Central support for agriculture, farmer welfare and industrial development.
The plea was made during a series of meetings in New Delhi on Tuesday by agriculture minister Kinjarapu Atchannaidu. He, along with civil aviation minister Ram Mohan Naidu, minister of state Bhupathiraju Srinivasa Varma, state ministers and MPs from AP, met finance minister Nirmala Sitharaman and submitted a memorandum as advised by the chief minister.
It sought a reduction in GST on raw tobacco (HSN 2401).
The delegation clarified that the request applied only to raw tobacco and not manufactured tobacco products. The existing 40 per cent GST had affected the value of FCV tobacco produced in Andhra Pradesh, impacting farmers, traders and exporters. Reducing the tax to 28 per cent, they said, would provide relief to stakeholders and improve the global competitiveness of Indian tobacco exports.
The delegation urged the Centre to take an early decision on the proposal.
Atchannaidu also held separate meetings with agriculture minister Shivraj Singh Chouhan and steel minister Bhupathiraju Srinivasa Varma.
During his meeting with Chouhan, the AP minister discussed remunerative prices for crops, procurement, marketing infrastructure, value addition, storage facilities, food processing, crop insurance, disaster relief and measures to enhance farmers' incomes. He said the state government was ensuring the timely supply of quality seeds, fertilizers and pesticides while strengthening mechanisms to address farmers' issues during the cultivation season.
He highlighted challenges arising from rising cultivation costs, climate change, drought, cyclones and excessive rainfall, and sought greater Central assistance to reduce production costs, strengthen procurement systems and ensure timely compensation and crop insurance benefits during natural calamities.
Atchannaidu also emphasised the need to promote digital agriculture, drone technology, mechanisation, soil health management and efficient water use, particularly for small and marginal farmers. He sought Central support for warehouses, cold storage facilities and processing units to improve value addition and generate rural employment.
According to the minister, Chouhan appreciated the initiatives taken by the AP government for farmer welfare and assured positive consideration of the state's proposals.
In his meeting with Srinivasa Varma, Atchannaidu discussed measures to strengthen agriculture, rural livelihoods and industrial development. He highlighted AP’s ports, coastline, infrastructure and skilled workforce as key advantages for attracting investment, generating employment and boosting economic growth.
The Union minister assured the delegation of the Centre's continued cooperation, and both leaders agreed that closer coordination between the Centre and the state would help accelerate development in the agriculture, industry and rural sectors.
