Food and Consumer Affairs Minister Ram Vilas Paswan said the government will impose the stock limit on perishable (horticulture) food items only if retail prices surge by 100 per cent, compared with the year-ago rate or an average price of the last five years.
With the amendments in the Essential Commodities Act, 1955, he said the stock limit on non-perishable food items will be imposed if prices rise by 50 per cent.
The Union Cabinet on June 3 approved amendments to the six-and-a-half-decade old Essential Commodities Act to deregulate food items, including cereals, pulses and onion. An ordinance was issued on June 5 to make these amendments effective.
"Amended EC Act will make stock limits orders more transparent & accountable & it will be imposed only on increase of retail price by 100% (perishable) & 50% (non-perishable) foodstuffs compared with price immediately preceding 12 months or average retail price of last 5 years," Paswan tweeted.
With the amendment to the EC Act, commodities like cereals, pulses, oilseeds, edible oils, onion and potatoes will be removed from the list of essential commodities, the government had said.
The amendment in the EC Act provides for the regulation of food items only under exceptional circumstances like national calamities, famine with a surge in prices.
Processors and value chain participants will also be exempted from the stock limit, apart from traders and wholesalers.
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