YS Jagan Warns Coalition Government
Former Chief Minister and YSRCP President Y.S. Jagan Mohan Reddy met aqua farmers from various districts and representatives of the Andhra Pradesh Prawn Federation at the party’s central office in Tadepalli, where they explained the severe crisis facing the aqua sector. After listening to them in detail, Y.S. Jagan assured the farmers of his full support.
He said that during the YSRCP government, the aqua sector received unwavering support and that the promise of supplying electricity to aqua farmers at Rs.1.50 per unit, as mentioned in the party manifesto, was fully implemented. Over 57 months, the government spent Rs.3,306 crore towards electricity subsidy for aqua farmers, providing substantial relief to the sector.
Recalling the previous TDP government, Y.S. Jagan said that between 2014 and 2019, aqua farmers paid Rs.3.85 per unit for electricity. Though Chandrababu Naidu announced Rs.2 per unit power tariff during the last six months before elections and even issued a Government Order, the promise was never implemented.
He further alleged that the coalition government is now attempting to reduce power subsidies for aqua farmers through G.O. Rt. No.169 issued a week ago. Referring to Clause 4, which mandates maintenance of the prescribed Power Factor (PF), he said the condition is extremely difficult for aqua motors to meet and would ultimately become a tool to deny electricity subsidy to thousands of farmers.
Y.S. Jagan stated that before 2019, the entire aqua seed and feed industry was controlled by a single syndicate, with the same group deciding seed prices, feed prices, and even the procurement price of shrimp produced by farmers, leaving the aqua sector devastated. To protect farmers, the YSRCP government established APSADA as a regulatory shield and implemented the AP Fish Feed (Quality Control) Act, 2020, making aqua companies accountable to farmers and bringing transparency to the sector.
He said the present coalition government has deliberately weakened APSADA and allowed feed companies to increase prices without its approval or consent. Feed prices have been increased by Rs.10 per kg for Vanami feed and Rs.12 per kg for Tiger feed, prompting him to question whether this was due to a “CBN Tax” or “Lokesh Tax.” He demanded that the increased feed prices be rolled back immediately.
Highlighting the initiatives undertaken during his tenure, Y.S. Jagan said the government established 35 integrated laboratories across coastal districts for the aqua sector, appointed 782 Fisheries Assistants in RBKs to provide technical guidance and scientific support to farmers throughout the cultivation cycle, and ensured continuous extension services. These initiatives earned Andhra Pradesh the SKOCH Award and the Best Marine State Award, while also making the state No.1 in the country in shrimp production and exports, with significant growth compared to the Chandrababu Naidu government.
Tadepalli:
Former Chief Minister and YSRCP President Y.S. Jagan Mohan Reddy demanded that the steep hike in aqua feed prices be rolled back by the end of this month, warning that if the government fails to do so, he will launch an agitation alongside aqua farmers on July 1 or 2. He said that during the 2019–2024 YSRCP government, the aqua sector received unwavering support, with the promise of supplying electricity at Rs.1.50 per unit fully implemented. Over a period of 57 months, the government spent Rs.3,306 crore towards electricity subsidy for aqua farmers.
He recalled that during the 2014–2019 TDP government, aqua farmers were charged Rs.3.85 per unit for electricity. Though Chandrababu Naidu announced a tariff of Rs.2 per unit and even issued a Government Order six months before the 2019 elections, the promise was never implemented. He further alleged that the present coalition government is now threatening to curtail power subsidies for farmers within designated zones through G.O. Rt. No.169 issued last week, pointing out that Clause 4, which mandates maintenance of a specified Power Factor (PF), is practically impossible for the motors used by aqua farmers to comply with. He said this was nothing but a deliberate attempt to deny electricity subsidy to aqua farmers and reiterated that YSRCP has always stood firmly with the aqua sector and will continue to do so.
Amid the deepening crisis in the aqua industry, aqua farmers from various districts and representatives of the AP Prawn Federation met Y.S. Jagan Mohan Reddy at the YSRCP central office in Tadepalli and explained the hardships they are facing. After listening to them patiently, he assured them of the party’s complete support.
Speaking further, Y.S. Jagan said that today both farmers and aqua farmers are passing through one of the most difficult phases in recent history. He stated that during the YSRCP government, every effort was made to ensure their prosperity, resulting in transformative reforms never seen before. “We stood by farmers at every step,” he said, recalling the establishment of over 10,000 Rythu Bharosa Kendras (RBKs) across the state and the appointment of 782 Fisheries Assistants to provide technical support to aqua farmers. To ensure quality seed and feed testing, the government established 35 Integrated Aqua Laboratories in major aqua cultivation regions. In addition, the YSRCP government created APSADA, with the Chief Minister as its Chairman, to regulate the sector and prevent syndicates from exploiting farmers, ensuring that no cartel could dominate the industry or betray the interests of aqua farmers.
Part 3 – English Translation
Electricity at Rs.1.50 per Unit:
“We supplied electricity to aqua farmers at just Rs.1.50 per unit, providing substantial relief to the sector. For this alone, our government spent Rs.3,306 crore as electricity subsidy. After we included this commitment in our election manifesto, Chandrababu Naidu announced that he would reduce the tariff from Rs.3.85 to Rs.2 per unit and even issued orders to that effect. However, he never implemented the promise, thereby denying aqua farmers electricity subsidy worth Rs.340 crore.”
Awards, Production and Export Growth in the Aqua Sector:
“Because our government stood firmly with the aqua sector in every possible way, aqua farming flourished like a festival. As a result, Andhra Pradesh received the prestigious SKOCH Award for Domestic Fish Marketing, besides being recognised as the Best Marine State for the years 2021–22 and 2023–24.
Aqua production also witnessed remarkable growth during our tenure. Total fish and shrimp production increased from 38 lakh tonnes in 2018–19 to 51 lakh tonnes by 2022–23. Freshwater shrimp production rose from 4.55 lakh tonnes to 9.56 lakh tonnes, while seawater shrimp production increased from 5.28 lakh tonnes to 7.15 lakh tonnes. Overall, combined marine, freshwater and seawater shrimp production grew from 11 lakh tonnes to 18.50 lakh tonnes within five years.”
Growth in Aqua Exports:
“During Chandrababu Naidu’s tenure in 2018–19, Andhra Pradesh exported 2.61 lakh tonnes of aqua products worth Rs.13,855 crore. Under our government, by 2022–23, aqua exports increased to 3.28 lakh tonnes valued at Rs.19,847 crore, reflecting the significant progress achieved by the sector.”
Our Government’s Commitment:
“These achievements were possible because our government had the commitment and sincerity to strengthen the aqua sector. With that vision, we initiated the establishment of an Aqua University, allocated Rs.100 crore for construction of its permanent campus, and simultaneously started academic classes in temporary buildings. Unfortunately, after coming to power, the coalition government has completely abandoned this important institution and its development.”
Everyone is Now Part of the Same Syndicate
“Today, the entire aqua sector—from seed and feed to processing—is controlled by the same group of people, all of whom are close to Chandrababu Naidu. Reducing shrimp prices during the production cycle while reviewing and increasing feed prices during the fishing ban period is nothing but a calculated conspiracy. Because of the failures of this government, aqua farmers are facing unprecedented hardships.
Roll Back Feed Prices or Face Agitation on July 1 or 2
Feed prices have increased by nearly Rs.16 per kilogram between February and June. The government must ensure that these prices are reduced before the end of this month. Otherwise, we will launch a statewide agitation along with aqua farmers on July 1 or 2. Let the entire state witness the gravity of this issue, and let us raise our voice loudly for the rights of aqua farmers. We are giving the government time until the end of this month to act. If it fails to roll back the hike, we will take the problems of aqua farmers to the attention of the entire nation.
Aqua farmers are in such deep distress that they cannot even declare a crop holiday. If they stop cultivation, the equipment and infrastructure used for aqua farming will rust and become unusable. The ponds they have excavated will also become barren and economically worthless.
Then What Tax Is This?
“When feed prices increased marginally during our government, they branded it as the ‘Jagan Tax’ and ran a false propaganda campaign. Today, feed prices have been increased drastically. So what should this be called? Whose tax is this? Where is this money going? Coincidentally, on the very day you (aqua farmers) came to meet me, seed and feed manufacturers issued newspaper advertisements attempting to justify the price hike.”
Syndicate Has Turned Into Open Exploitation
“They have now formed a full-fledged syndicate and collectively increased prices at will. They conveniently review feed prices during the fishing ban period and use that as an excuse to impose higher rates. This is neither fair nor scientific. Price reviews should be conducted during periods of abundant fisheries production and decisions should be based on actual market conditions.”
Cooperative Model Can Protect Farmers
“If the aqua seed and feed sectors operate through a cooperative model, such syndicates and exploitation will become impossible. The success of Amul in the dairy sector proves how a cooperative structure can protect producers and ensure fair returns to farmers.”
APSADA Was Created to Break the Syndicate
“Before our government came to power, the aqua sector suffered under a similar syndicate, pushing farmers into severe distress. To protect them, our government not only supplied electricity at Rs.1.50 per unit but also established the Andhra Pradesh State Aqua Development Authority (APSADA) with the Chief Minister as its Chairman. We also enacted the AP Fish Feed (Quality Control) Act, 2020, making seed and feed companies accountable to farmers and introducing regulatory oversight over the sector.
The present coalition government has systematically weakened APSADA. As a result, feed companies have increased prices without APSADA’s approval or permission. Vannamei feed prices have been increased by Rs.10 per kg and Tiger feed by Rs.12 per kg. So what is this tax now? Is it the ‘CBN Tax’ or the ‘Lokesh Tax’? The government must immediately roll back the increased aqua feed prices.”
APSADA Broke the Syndicate
“Through APSADA, we not only dismantled the syndicate operating in the aqua sector but also forced feed companies to roll back price hikes on three separate occasions. When Thailand-based CPF Company attempted to increase feed prices by Rs.6.80 per kg in one go, aqua farmers brought the issue to the government’s notice. We immediately summoned the company representatives and directed them to withdraw the hike, warning that the Fish Feed Act would be invoked if they failed to comply. They backed down. That is how sincerely we worked to protect aqua farmers.
Today, however, the entire aqua seed, feed, and processing industry is controlled by a single group of people who are close to the ruling establishment. That is why no action is being taken against them.”
Regular Review of Shrimp Prices
“During our government, APSADA reviewed international shrimp prices once every 15 days to ensure that farmers received the government-prescribed support price. Shrimp of 100 count was purchased at Rs.245 per kg, while 30 count shrimp fetched Rs.470 per kg. Today, production costs have risen sharply, but shrimp prices have not increased—instead, they have fallen—pushing aqua farmers into severe losses.”
Remarks by Other Participants
Mudunuri Prasada Raju, YSRCP West Godavari District President:
“The aqua sector has been in crisis for the last two years, and the TDP-led coalition government has become a curse for aqua farmers. The recent government order on subsidised electricity contains conditions that appear designed to gradually withdraw the subsidy. The introduction of the Power Factor (PF) condition is part of a conspiracy to deny electricity subsidy to aqua farmers. Before Y.S. Jagan Mohan Reddy’s government, the sector never received meaningful support from the government. It was only after his government came to power that electricity subsidy and APSADA were introduced, providing stability to the industry. Today, the sector is once again in deep crisis. The major seed and feed companies belong to relatives and associates of Chandrababu Naidu, which is why no one is questioning them.”
IPR Mohan Raju, Bhimavaram:
“APSADA, established by Y.S. Jagan Mohan Reddy with the Chief Minister as its Chairman, became a lifeline for aqua farmers. Today, feed prices are being increased by bypassing APSADA altogether. Feed companies are using the seasonal increase in fish meal prices during the marine fishing ban as an excuse to raise feed prices, despite having sufficient institutional support, access to nearly 40 banks, and bulk procurement systems that allow them to maintain inventory in advance. Even with these advantages, they continue exploiting farmers, causing losses estimated at Rs.10,000 crore.
When CPF attempted to raise prices during the YSRCP government, the administration intervened and warned that the Act would be invoked unless the hike was withdrawn. APSADA had the authority to regulate such practices. Feed prices determined between November and December should remain unchanged throughout the year, as raw material availability is stable during that period. The policy of exploiting farmers must end.
During the COVID-19 pandemic, the Jagan government managed the aqua sector effectively. Greater attention must now be given to disease prevention, particularly as Vannamei shrimp farmers have suffered heavy losses due to recurring diseases. Although Y.S. Jagan Mohan Reddy sanctioned a Fisheries University at Narsapuram, the present government has failed to take it forward. Mandatory quality certification for seed, feed, and all aqua inputs must be enforced. At present, producing 100-count shrimp costs around Rs.275 per kg, while farmers receive only Rs.225 per kg in the market. Programmes such as Fish Andhra, which promoted the local market, proved highly beneficial for the aqua sector.”
G. Srinath Reddy, Nellore District:
“Feed prices were increased by Rs.4,000 per tonne in February, and again by Rs.10,000 to Rs.12,000 per tonne on June 13. The production cost for 100-count shrimp has reached Rs.275 per kg. Until a month ago, companies were purchasing at Rs.250 per kg, but after farmers protested against the feed price hike, the purchase price was brought down to Rs.225 per kg. Before Y.S. Jagan Mohan Reddy came to power, aqua farmers suffered enormous losses. The electricity subsidy of Rs.1.50 per unit introduced during his government brought tremendous relief and was celebrated by farmers.”
Duggineni Gopinath, Prakasam District:
“Y.S. Jagan Mohan Reddy created a protective shield for aqua farmers through APSADA. A legal framework was established to ensure the supply of quality seed and feed. During the COVID-19 pandemic, when no one was willing to purchase our produce, the Jagan government personally intervened and ensured procurement. The syndicate among processing plants was effectively dismantled during the YSRCP government.
I am not affiliated with any political party; I am stating facts as they are. During the YSRCP government, regular meetings were held with processing plants, and under Jagan’s directions, a fair procurement price was fixed for farmers. The APSADA Act proved immensely beneficial. Even during a crisis like COVID-19, we were able to sell our produce, and production costs remained under control. When companies were offering Rs.180 per kg, the government ensured farmers received Rs.220 per kg, for which we remain grateful.
Whenever farmers suffered losses due to poor-quality seed, the government summoned the concerned companies and ensured fresh seed was supplied free of cost. When CPF attempted to increase feed prices, Jagan intervened and forced a rollback by bringing even the company’s international chairman to the negotiating table.
In February, feed companies increased prices without APSADA’s approval by acting as a syndicate. They increased prices again on May 11, and only after you raised the issue were those rates frozen. On June 13, they once again increased Vannamei feed prices by Rs.10 per kg and Tiger feed by Rs.12 per kg, while also charging interest-like rates. These hikes were imposed without APSADA’s approval and despite repeated warnings that aqua farming would become unsustainable. Farmers’ objections were ignored.
In May, 100-count shrimp was fetching Rs.270 per kg, but because we launched protests, the price was reduced to Rs.220 per kg. In Prakasam district, production costs range between Rs.270 and Rs.290 per kg due to saline water conditions, while today’s market price is only Rs.240 per kg, leaving farmers with a loss of around Rs.50 per kg. Only farmers producing 50-count shrimp can break even, and they account for barely 20 percent of producers. Farmers are suffering severe losses. Therefore, the law enacted by the Jagan government must be enforced strictly, and the increased feed prices must be withdrawn immediately.”
C.H. Kumar Dattatreya Varma, Palakollu:
“The government recently issued G.O. Rt. No.169, and Clause 4 introduces conditions relating to the Power Factor (PF). This appears to be a deliberate attempt to deny electricity subsidy to aqua farmers. To comply with the prescribed PF requirement, farmers will have to install capacitors, which would cost around Rs.1.5 lakh per acre. This will impose an enormous financial burden. Lease costs alone range from Rs.1 lakh to Rs.1.5 lakh per acre, seed costs about Rs.50,000, and nearly two tonnes of feed are required. Overall, cultivating a single acre now requires an investment of approximately Rs.5 lakh, placing unbearable pressure on aqua farmers.”
Prasada Raju, West Godavari District:
“Almost the entire aqua produce is exported. Even when the US dollar is nearing Rs.90, farmers are unable to get more than Rs.240 per kg. In earlier years, when the dollar was worth around Rs.40, Vannamei shrimp fetched nearly Rs.300 per kg. Today, electricity subsidy is being used as an excuse to justify feed price hikes while the government openly backs companies owned by its own associates and permits them to increase prices.”
Peddiraju, West Godavari District:
“Aqua companies are operating like a Mumbai-style mafia. They manipulate prices according to the season while the government and its machinery remain silent. Six months ago, when raw material costs came down, companies claimed they reduced feed prices by Rs.4 per kg, but in reality, they merely adjusted dealer commissions. Farmers cannot even declare a crop holiday because the entire infrastructure would deteriorate and rust.”
Raj Kumar:
“Aqua farming in Thailand is thriving because the policies there are designed to protect and support farmers.”
G. Narayana Murthy, Mogalturu, West Godavari District:
“During the previous government, farmers received strong support and stable prices. A fixed procurement price was determined and implemented. Today, farmers are in severe distress. The same companies control seed, feed, and processing plants. They lure farmers with attractive prices at the beginning of the crop cycle but drastically reduce procurement prices by the time the harvest is ready, while simultaneously increasing feed prices at will. You sanctioned the Fisheries University at Narsapuram, but its development has now come to a standstill. Jagan garu should continue to stand firmly with the aqua sector.”
Jayakrishna Raju, Undi:
“Aqua farmers are in an extremely difficult situation. The seed and feed industries are controlled by a single group. Defeating your government has become a curse for us. You stood by aqua farmers and created strong institutional mechanisms to protect them. The aqua sector provides livelihoods to thousands of middle-class families, whose lives are now being devastated. We are confident you will return as Chief Minister. The government itself should establish seed and feed plants, which would greatly benefit farmers.”
Dharmaraju:
“If the aqua sector remains in crisis, employment will decline and government revenues will also suffer. Nearly 7 lakh acres in Andhra Pradesh are under aqua cultivation, directly supporting at least 7 lakh livelihoods. Linking electricity subsidy to the Power Factor (PF) condition is unjust. Even during the COVID-19 crisis, the previous government stood firmly with farmers by ensuring procurement at a minimum support price. Had Jagan garu not intervened then, the aqua sector would have suffered even greater damage.”
Nani Raju, Amalapuram:
“When Jagan garu raises his voice, farmers’ problems find solutions. Quality seed is no longer being supplied. Even as we were coming here for this meeting today, members of another political party were staging a protest over the same issue. We believe justice will be done only if you speak out on behalf of aqua farmers.”
Andraju Challa Rao, Former APCOB Chairman:
“We are now prepared to fight against the feed companies. All we need is one call from you, and we will confidently launch the struggle. Today, the feed, seed, and processing industries are all concentrated in the hands of a single group, resulting in grave injustice to aqua farmers.”
Narasimha Rao, Aqua Farmer:
“During the YSRCP government, certification services were provided free of cost. Today, farmers are forced to spend Rs.5,000 per acre for the same certification. Soil testing used to be conducted regularly, but that has now stopped. Feed distribution through Rythu Bharosa Kendras (RBKs) on credit was available earlier, but that system no longer exists. As a result, small and marginal aqua farmers are being pushed into becoming daily wage labourers.”
Participants
The meeting was attended by Tadepalligudem YSRCP Coordinator Vaddi Raghuram Naidu, YSRCP West Godavari District President Mudunuri Prasada Raju, and representatives of the AP Prawn Federation, including IPR Mohan Raju, Duggineni Gopinath, G. Raj Kumar, Nadimpalli Suryanarayana Raju, R. Venkata Raju, G. Dharma Raju, K. Srinath Reddy, Meka Venkateswara Rao, K. Subba Reddy, Ramesh Reddy, C.H. Kumar Dattatreya Varma, G. Narayana Murthy, K. Narasimha Rao, Gunturi Peddiraju, A. Challa Rao, and Bokka Radhakrishna, along with aqua farmers from various districts across Andhra Pradesh.
