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Agencies:

Parliament passes amendments to essential commodities law

New Delhi
September 22, 2020

Parliament on Tuesday passed a bill to remove cereals, pulses, oilseeds, edible oils, onion and potatoes from the list of essential commodities. The Essential Commodities (Amendment) Bill, which was approved by the lower house on September 15 was approved by a voice vote in Rajya Sabha. The bill replaces an ordinance promulgated in June.

The bill is also aimed at removing 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, the government had said earlier.

Replying to a short debate, Minister of State for Consumer Affairs, Food and Public Distribution Danve Raosaheb Dadarao said the stock limit conditions imposed through the law were hindering investment in the agriculture infrastructure.

The amendments to the six and half decade law provides that stock holding limit on commodities will only be imposed under exceptional circumstances like national calamities, famine with a surge in prices, the minister said.

The Minster said the move will boost investment in agriculture sector and will also create more storage capacities to reduce post harvest loss of crops. "This amendment is in favor of both farmers and consumers," Dadarao added.