Prakash Javadekar said farmers have wanted these reforms for a long time (File)
An executive order tweaking the Essential Commodities Act -- dubbed "historic" by the government -- was approved today by the Union cabinet which will do away with regulations on a chunk of items like potatoes and onions, enabling farmers to get higher prices. A second executive order, or ordinance, to promote barrier-free trade in agricultural produce was also approved. This will allow farmers to engage with processors, aggregators, wholesalers, large retailers, exporters within and outside the state.
"We are all moving towards One Nation, One Market," Union minister Prakash Javadekar said after the Cabinet meeting, chaired by Prime Minister Narendra Modi. "This is a visionary step towards transformation of agriculture and raising farmers' income," the government said.
"Anaj (vegetables), oil, onion, potato have been removed from under the Essential Commodities Act. Now farmers can store their produce sell to whoever they want. When there is a natural calamity, war, price rise, only then the Act may be invoked," Mr Javadekar said.
"Farmers have wanted this for a long time. We are doing it. Farmers now have been freed from APMC. They now have the freedom to sell at the highest price available or offered," he added.
The tweak in the Essential Commodities Act was meant to bring out cereals, pulses, oilseeds, edible oils, onion and potatoes from list of essential commodities that kept their prices under regulation. It kept private investors away, ensuring the lack of proper infrastructure and storage facilities and resulted in losses for farmers whenever there was a bumper crop.
Now with the bar of Essential Commodities gone, there is expectation that the sector will attract private and foreign direct investment.
'The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020', will do away with the restrictions the farmers face while marketing produce.
There are restrictions for farmers in selling agri-produce outside the notified APMC market yards. They are expected to sell the produce only to registered licensees of their respective state governments.
The new Ordinance will allow farmers to choose where and to whom they sell their produce.
