Essential Commodities Amendment Bill 2020

Essential Commodities Amendment Bill 2020

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

Key Highlights of the Bill

  • The Bill aims to remove the 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 in driving up investment in cold storages and modernization of food supply chain.
  • While liberalizing the regulatory environment, the government has also ensured that interests of consumers are also safeguarded.
  • It has been provided in the amendment, that in situations such as war, famine, extraordinary price rise, natural calamity, such agricultural foodstuff can be regulated.
  • The installed capacity of a value chain participant and the export demand of an exporter will remain exempted from such stock limit imposition to ensure that investments in agriculture are not discouraged.
  • This amendment is required to prevent wastage of Agri-produce due to lack of storage facilities.
  • This amendment will create a positive environment not only for farmers but also for consumers and investors.
  • The amendment is aimed at strengthening the overall supply chain mechanism of the agriculture sector.
  • The 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.

Examrace Team at Aug 21, 2021