Lok Sabha on Tuesday passed the Essential Commodities (Amendment) Bill, 2020, to replace its corresponding Ordinance, which was promulgated in June this year. The Bill seeks to amend the Essential Commodities Act, 1955.
The bill aims to increase the availability of buyers for farmers’ produce, by allowing them to trade freely without any license or stock limit.
The bill reads corresponding with the Farmers’ Produce Trade and Commerce (Promotion and Facilitation) Bill, 2020 and the Farmers (Empowerment and Protection) Agreement of Price Assurance and Farm Services Bill, 2020 (both of which have been introduced in the lower house),
The Essential Commodities Act, 1955 empowers the Centre to designate certain commodities such as food items, fertilizers, etc. as essential commodities and regulate its production, supply, distribution, trade, and commerce, for securing their ‘equitable distribution’ and ‘availability at fair prices’.
The Bill provides that the Centre may regulate the supply of certain food items including cereals, pulses, potatoes, onions, edible oilseeds, and oils.
Meanwhile, the power can only be exercised in extraordinary situations like war, famine, price rise and natural calamities.
However, Congress MP Amar Singh opposed the bill and said that it deviates from the principal act. He said that the bill restricts certain power exercised to the Centre.
While other members of parliament opposed the delimitation of stock, emphasizing that it will only benefit private investors at the cost of poor farmers.
Minister of State for Consumer Affairs defended the Bill and claimed that it is necessary to control price volatility, partly induced by the pandemic. He further assured that the farmers will benefit from this legislation as it will attract investment in cold storage and save crop produce.