A liquid commodity derivatives market is essential for clear price signals. By retaining discretionary government control, the Bill blocks its development.
West Bengal invoked the Essential Commodities Act to impose restrictions on potato's storage, trade, and transport. It pits consumers in Kolkata against those in Guwahati, Ranchi, and Bhubaneswar.
NCRB data shows that states such as Maharashtra, Rajasthan, Bihar, UP and Tamil Nadu witnessed a massive jump in cases related to the Essential Commodities Act.
Prices of pulses have seen sustained inflation this year, hovering above the Rs 100/kg in the retail market. Govt move comes ahead of gradual unlocking, with the festival season just weeks away.
The Essential Commodities (Amendment) Act 2020 may not be so detrimental to the farmers producing surpluses. It is the consumers who may have to worry.
The Standing Committee on Food, chaired by TMC MP Sudip Bandyopadhyay, recommended the government to implement the Essential Commodities (Amendment) Act, 2020.
The bill gives the Centre the power to designate certain commodities like food items, fertilisers and petroleum products as essential commmodities and regulate their production, supply, distribution, and trade.
Modi govt has made actual legal changes to implement its policy statements on agriculture reforms. It should now plug loopholes to realise their full potential.
Govt needs to bring states on board, strengthen supply chain to end mandis’ monopoly, and sparingly use the escape clauses in the Essential Commodities Act.
Economic Survey 2019-20 blames the 1955 EC Act and the Food Corporation as govt interventions that have undermined markets and held back agricultural growth.
Indian refiners are testing Venezuelan barrels again as Russian supply sinks, but analysts say volumes will remain limited due to refinery constraints & supply capacity.
This is the game every nation is now learning to play. Some are finding new allies or seeing value among nations where they’d seen marginal interest. The starkest example is India & Europe.
COMMENTS