Team News Riveting
New Delhi, September 22
The list of essential commodities would be shortened as cereals, pulses, oilseed, edible oils, onion and potatoes would be removed from the catalog.
The Rajya Sabha today passed the Essential Commodities (Amendment) Bill 2020 with provisions to remove the above from the list of essential commodities. Earlier, the bill was introduced in the Lok Sabha on September 14 and was passed the next day.
It would replace ordinances promulgated on June 5, 2020.
Besides doing away with imposition of stock limit except under exceptional conditions, the Legislation would help in more investment in cold storages, modernization of the food supply chain, bringing price stability, raise farm income, create competitive market environment and prevent wastage of agri-produce.
It would also end harassment of businessmen and traders.
The EC (Amendment) Bill 2020 aimed to remove fears of private investors of excessive regulatory interference in their business operations. The freedom to produce, hold, move, distribute and supply would lead to harnessing economies of scale and attract private sector/foreign direct investment into the agriculture sector.
The Government, while liberalizing the regulatory environment, has also ensured that interests of consumers are safeguarded. It had been provided in the Amendment, that in situations such as war, famine, extraordinary price rise and natural calamity, such agricultural foodstuff could be regulated.
However, the installed capacity of a value chain participant and the export demand of an exporter will remain exempted from such stock limit imposition so as to ensure that investments in agriculture are not discouraged.
While India has become surplus in most Agri-commodities, farmers have been unable to get better prices due to lack of investment in cold storage, warehouses, processing and export as the entrepreneurial spirit gets dampened due to the Essential Commodities Act. Farmers suffer huge losses when there are bumper harvests, especially of perishable commodities.
