Addressing the media in Delhi on Wednesday, Union I&B Minister Prakash Javadekar and Agriculture Minister Narendra Singh Tomar announced that the Cabinet meeting chaired by Prime Minister Narendra Modi, approved the proposed ECA amendments with the visionary to transform the agriculture industry and raise farmers’ income.
As per the proposed amendments to Essential Commodities Act, commodities like cereals, pulses, oilseeds, edible oils, onion and potatoes will be removed from list of essential commodities. This will remove fears of private investors of excessive regulatory interference in their business operations.
Elaborating on the move, agriculture minister said that 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.
The cabinet added that the amendments announced by the Centre aims to 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.
The announcement in this regard was first made by Union Finance Minister Nirmala Sitharaman on May 15 as part of Rs 20-Lakh Crore COVID-19 relief package.
While unveiling the details of the third tranche of the economic stimulus, Nirmala Sitharam announced that the Centre decided to amend Essential Commodities Act 1995 in order to support the agricultural industry which was worst-hit during corona induced lockdown. She said that the reforms focus on enabling better price realization for farmers.
Besides announcements over ECA amendments, government also nodded the Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020'. Ordinance will create an ecosystem where the farmers and traders will enjoy freedom of choice of sale and purchase of agri-produce. It will also promote barrier-free inter-state and intra-state trade and commerce outside the physical premises of markets notified under State Agricultural Produce Marketing legislations.