New Delhi: Parliament passed the Essential Commodities (Amendment) Bill on Tuesday which removed cereals, pulses, oilseeds, edible oils, onion and potatoes from the list.
The Lok Sabha approved the bill on September 15 which also sanctioned by majority vote in Rajya Sabha.
The bill is aimed to get rid of the private investors’ fear of excessive regulatory involvement in their business operations.
The government had claimed previously that the liberty to produce, hold, move, distribute and supply will control the economies of scale and attract private sector/foreign direct investment into agriculture sector.
Minister of State for Consumer Affairs, Food and Public Distribution, Danve Raosaheb Dadarao, said that the law abiding stock limit conditions were obstructing investment within the agriculture framework.
“This amendment is in favour of both farmers and consumers”, Dadarao claimed. Investment will increase storage capacities which can reduce loss of crops post harvest.
The amendments to the law will only allow stock holding limit under exceptional circumstances like national calamities, famine with a surge in prices, as the minister said. It exempts the processors and value chain participants from holding the stock limit.
The changes in the 1955 law happens to be a vital step by the government to attain its target to try and double the farmers’ income and also it’ll be easier for them to do business.