Parliament passes amendments to essential commodities law; positive environment for farmers, investors to be created, says govt

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Through the amendment, the government aims to remove fears of private investors of excessive regulatory interference in their business operations

The Essential Commodities (Amendment) Bill 2020 with provisions to remove commodities like cereals, pulses, oilseeds, edible oils, onion and potatoes from the list of essential commodities was passed by Rajya Sabha on Tuesday.

Earlier, the Bill was introduced by the Minister of State for Consumer Affairs, Food & Public Distribution Danve Raosaheb Dadarao in the Lok Sabha on September 14 to replace ordinances promulgated on 5th June 2020. The bill was passed by Lok Sabha on September 15.

The EC (Amendment) Bill 2020 aims to remove fears of private investors of excessive regulatory interference in their business operations. 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 agriculture sector. It will help drive up investment in cold storages and modernization of food supply chain, Dadarao said.

The government, while liberalising the regulatory environment, has also ensured that interests of consumers are safeguarded. It has been provided in the Amendment, that in situations such as war, famine, extraordinary price rise and natural calamity, such agricultural foodstuff can 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.

Replying to the discussion on the Bill before it was passed by the Rajya Sabha, Dadarao said that this amendment is required to prevent wastage of agri-produce due to lack of storage facilities.

He said this amendment will create a positive environment not only for farmers but also for consumers and investors and will definitely make our country self-reliant. He said that this amendment will strengthen the overall supply chain mechanism of the agriculture sector. This amendment will also help to achieve the government’s promise to double the farmer’s income by promoting investment in this sector and promote ease of doing business.

In the morning, several Opposition members had staged a walkout from the House seeking revocation of the suspension of eight members.

Image credit: India Times

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