The Essential Commodities (Amendment) Bill

 PROVISIONS 

  • The bill takes away cereals, pulses, oilseeds, edible oils, onion and potatoes from the list of essential commodities. 
  • Therefore, these commodities are now free of the Essential Commodities Act restrictions and stand deregulated. 
  • However, the central government has retained the right to regulate them under extraordinary circumstances, such as in case of a war, famine, natural calamity, and impose stock limits if there is a steep rise in prices.
PROS
  • The move will attract private sector/FDI into farm sector as it will remove hairs of private investors of excessive regulatory interference in business operations. 
  • This in further will bring investment for farm infrastructure like cold storages, and modernizing food supply chains.
  • The amendment will help both farmers and Consumers by bringing in price stability.
  • It will create a competitive market environment and cut wastage of farm produce.
CONS
  • Price limits for extraordinary circumstances are so high that they are likely to be never triggered.
  • Big companies will have the freedom to stock commodities, which may lead to hoarding.
  • The companies stocking the commodities will dictate terms to farmers which will lead to less prices for the cultivators


SOURCES: IE, THE WIRE

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