Big Push to ‘One India, One Agriculture Market’ as Cabinet Approves Amendments to Essential Commodities Act
New Delhi: In a big push to ‘One India, One Agriculture Market’ concept, the Union Cabinet today approved amendments to the Essential Commodities Act, 1955 to allow the farmers to sell produce outside their own states. While India has become surplus in most agri-commodities, farmers have been unable to get better prices due to lack [...]
New Delhi: In a big push to ‘One India, One Agriculture Market’ concept, the Union Cabinet today approved amendments to the Essential Commodities Act, 1955 to allow the farmers to sell produce outside their own states.
While India has become surplus in most agri-commodities, farmers have been unable to get better prices due to lack of investment in cold storage, processing and export as the entrepreneurial spirit gets dampened due to hanging sword of Essential Commodities Act. Farmers suffer huge losses when there are bumper harvests of perishable commodities. With adequate processing facilities, much of this wastage can be reduced.
With the amendment 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, the Ministry of Consumer Affairs, Food & Public Distribution said in a statement.
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 statement added.
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