The government will bring amendments to the Essential Commodities Act of 1955 to enable better price realisation for farmers by attracting investments and making agriculture sector competitive.
The amendment will ensure deregulation of agriculture foodstuffs including cereals, edible oils, oilseeds, pulses, onions and potato.
The government also vowed to bring agriculture marketing reforms to provide marketing choices to farmers.
After the amendment stock limit will be imposed on these commodities will be done under very exceptional circumstances like national calamities, famine with the surge in prices.
Under the act, the government directs agencies for the maintenance of stock limits of essentials so that prices of these commodities can be regulated, but that is all set to change.
It added that ‘no such stock limit shall apply to processors or value chain participant, subject to their installed capacity or to any exporter subject to the export demand.”
The government said the EC Act was enacted in the days of scarcity and deregulation was meant to attract better prices, investment and to make farm sector competitive.
The long-awaited reforms in the farm sector were announced in the third tranche of measures, which focused on farmers and fishermen. While the first tranche of measures focused on alleviating the distress in the Micro, Small and Medium Enterprises (MSMEs) sector, the second set was aimed at migrant workers, farmers, and street vendors.