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 September 22, 2020.
- Earlier, the bill was introduced in the Lok Sabha on 14th September, 2020 to replace ordinances promulgated on 5th June 2020. The bill was passed by Lok Sabha on 15th September, 2020.
- 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.
- 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.
- The legislation will help drive up investment in cold storages and modernization of food supply chain.
- It will help both farmers and consumers while bringing in price stability. It will create competitive market environment and also prevent wastage of agri-produce that happens due to lack of storage facilities.
(Source: PIB)
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