Centre amends Essential Commodities Act to benefit farmers; renames Kolkata Port to Syama Prasad Mookerjee Port

New Delhi: Union Cabinet meeting, chaired by Prime Minister Narendra Modi, on Wednesday (June 3) took six decisions, including 3 for agriculture, said Union I&B Minister Prakash Javadekar.  He added that the cabinet also approved the renaming of Kolkata Port Trust as Syama Prasad Mookerjee Trust.

Addressing media persons, Javadekar said the government has made farmers-friendly amendments to the Essential Commodities Act, approving a historic amendment in the Act to make the regulatory environment liberalised for farmers.

He termed the decisions as a landmark to benefit farmers and transform the agriculture sector. "Now farmers will have the freedom to sell their produce on the basis of mutual consent at a higher price," he said.

The government also approved setting up of an Empowered Group of Secretaries (EGoS) and Project Development Cells (PDCs) in ministries/departments for attracting investments in India, said Prakash Javadekar.

He also informed that the cabinet has approved the establishment of Pharmacopoeia Commission for Indian Medicine and Homoeopathy (PCIM&H) as Subordinate Office under the Ministry of AYUSH.

Earlier, a farmer or a trader was unable to stock more than the crop yield limit and the limit was also fixed for cold storage. In such a situation, the bumper crop used to spoil or was sold at throwaway prices. With the ECA amendment, farmers or traders will now be able to stock their crops and will have to pay no penalty.

This amendment will also end the stock limit on grains, pulses, oil, oilseeds, onion and potato. Big farmers and private players will now be able to invest in storage facility to retain their crops till they they find it appropriate to sell.

The removal of stock limit is likely to promote hoarding as well as black marketing, but the government has made arrangements to check this practice as certain conditions will be implied with this provision. In case of stock limit, the government will impose stock limit if it witnesses the price rise of some products.

Similarly, in times of war, disaster, famines, the government can impose stock limits. This will be done in the wake of the price fluctuations in the market.