NEW DELHI :
Finance minister Nirmala Sitharaman stated on Friday the Essential Commodities Act, a greater than six decade previous law that empowers authorities to impose curbs on stocking of farm produce, shall be amended to make it in tune with the occasions and to appeal to investments into the farm sector.
Amending the Essential Commodities Act of 1955 is among the many 11 measures Sitharaman introduced to reform and to enhance infrastructure and logistics services wanted for giving an enormous push to the sector, the most important employer within the financial system.
The concept is to take away the provisions that empower authorities to specify inventory restrictions as soon as wanted in an period of meals shortages.
“Now the ECA wants an modification. That modification is essentially in the direction of ensuring that cereals, edible oils, oil seeds, pulses onions and potatoes will fully be deregulated. Therefore, except there may be a rare scenario, there isn’t a requirement to invoke ECA. Stock limits shall be imposed solely in distinctive conditions corresponding to nationwide calamity, famine or if there’s a big surge in costs,” Sitharaman stated explaining the rationale for amending the law.
No inventory restrict shall apply to meals processors or worth chain contributors topic to put in capability, the minister stated the transfer will be certain that export demand for India’s farm produce shouldn’t be affected.