Key Points :
- Cereals, Pulses, Onions, Oilseeds, Edible Oils and Potatoes removed from the list of essential commodities after Parliament passes law on Tuesday
- Minister of State for Consumer Affairs, Food and Public Distribution Danve Raosaheb Dadarao stated the amendment is in favour of both consumers and farmers
- According to the government, these reforms are aimed at doubling farmers’ income and for ease of business
The Parliament on Tuesday passed a bill removing cereals, pulses, onions, oilseeds, edible oils and potatoes from the list of essential commodities.
The bill was passed in order to remove fears of private investors that they may face excessive regulatory interference in their business operations.
The Essential Commodities (Amendment) Bill, which was approved in the Lok Sabha on September 15, was passed in the Rajya Sabha by a voice vote. This bill replaces an ordinance brought into effect in June.
Answering a short debate, Minister of State for Consumer Affairs, Food and Public Distribution Danve Raosaheb Dadarao stated the stock limit conditions which were imposed through the law were hindering investment in the agriculture infrastructure.
The government had earlier stated that this bill will provide the freedom to produce, hold, move, distribute and supply will lead to harnessing of economies of scale and attract private sector/foreign direct investment into the agriculture sector.
After the amendments to 1955 law, the stock holding limit on commodities will only be imposed under exceptional circumstances like national calamities, famine with a surge in prices, the minister said.
According to him, these changes are an important step by the government to achieve its target of doubling farmers’ income and also for ease of doing business.
Additionally, processors and value chain participants are exempted from the stock limit. According to the minister, this move will boost investment in the agriculture sector and will also create more storage capacities to reduce post harvest loss of crops.
“This amendment is in favour of both farmers and consumers,” Dadarao added.
He stated that the essential commodities act was brought when India was not a self sufficient country in food grains production. But now the situation has changed, therefore the amendment was required, he said.
Even though 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.
Farmers suffer huge losses when there are bumper harvests, especially of perishable commodities, he said.
