Parliament passed a bill on Tuesday to exclude from the list of essential commodities cereals, pulse, oils, edible oils, onions and potatoes. A vote in Rajya Sabha was approved for the Critical Product Project (Amendment) approved by the lower House on 15 September. This bill covers for a decree passed in June.
The bill also seeks to remove concerns of undue regulatory intervention from private investors in their companies. The freedom to produce, maintain, market, and supply would result in economies of scale being harnessed and direct private / foreign investment in agriculture attracted, the government had previously stated.
The Minister of State for Consumer Affairs, Food and Civil Service Danve Raosaheb Dadarao replied to a brief discussion by saying that stock limit requirements imposed by law were hampering investment in agricultural infrastructure. The amendment to the six-and-a-half decade legislation stipulates that the cap on stocks holding products is enforced only in extraordinary circumstances such as national calamities or starvation with a price rise, the Minister said.
The inventory cap is also omitted for processors and supply chain participants. The minister said the move would increase investments in agriculture and also increase storage capacity to reduce crop losses after harvest.
“It is for farmers and consumers to benefit from this transition,” added Dadarao. The amendments to the 1955 laws, according to him, are an essential step for the administration to achieve its goal of doubling farmers ‘ income and making things simpler.
He said the key commodities law was brought about when the country in food grain production was not self-sufficient. But the situation has now changed, so the amendment has been essential, he said.
Though India is now surplus in most agricultural commodities, farmers were unable to obtain better prices as cold storage, warehouses, processing and export remained insufficient.
Farmers suffer enormous losses, particularly from perishable commodities, if there are bulk pickings. Earlier in the day, several opposition members were leaving the House calling for the eight-member suspension to be abolished.