Centre to push through agri-marketing reforms as part of stimulus package
Making long-pending agricultural marketing reforms the centrepiece of the third tranche of the Atmanirbhar Bharat Abhiyan economic stimulus package, Union Finance Minister announced plans to enact a central law to permit barrier-free inter-State trade of farm commodities and ensure a legal framework to facilitate contract farming.
The third tranche also included plans to invest ₹1.5 lakh crore to build farm-gate infrastructure and support logistics needs for fishworkers, livestock farmers, vegetable growers, beekeepers and related activities, although this includes some previously budgeted money and extensions of existing schemes.
The Centre will deregulate the sale of six types of agricultural produce, including cereals, edible oils, oilseeds, pulses, onions and potatoes, by amending the Essential Commodities Act, 1955.
Several agricultural economists and farm activists welcomed the reform and investment announcements, but questioned the lack of immediate support to help farmers survive the current crisis.
The Essential Commodities Act was enacted at a time of food scarcity, and needs to reflect current concerns.
Now what is happening is that farmers are producing.
There is an abundance of crops, and this sometimes leads to issues because they would want to export, and we don’t permit that.
Because of a flip-flop sometimes, farmers don’t get the benefit.
Some other times, the consumers suffer, so there is a need to amend the Act.
No stock limit
Stock limits will not be imposed on these commodities except in case of national calamity or famine or an extraordinary surge in prices.
The Centre has been attempting to reform agricultural marketing through a model Act which it encourages States to adopt.
However, it now intends to enact a central law to allow farmers to sell produce at attractive prices beyond the current mandi system, facilitating barrier-free inter-State trade and e-trading.
Asked how the Centre could enact a law on agricultural marketing, which remains on the State list, the Minister pointed out that inter-State trade falls in the central list.
The Centre has been attempting to reform agricultural marketing through a model Act which it encourages States to adopt.
However, it now intends to enact a central law to allow farmers to sell produce at attractive prices beyond the current mandi system, facilitating barrier-free inter-State trade and e-trading.
