Agricultural produce exempted from the Essential Commodities Act, major decision by the union cabinet

New Delhi: The decision to remove agricultural produce from the purview of the Essential Commodities Act, was taken during the meeting of the union cabinet. This amendment will free the farmer from the APMC act and he will be allowed to store the produce and sell it, at an opportune time and place, for better returns. The government expressed confidence that this will increase the profit in the hands of the farmer, increase their income and the agricultural sector will become attractive for investment. Union Minister Prakash Javadekar said that this decision is a major step towards the ‘One Nation One Market’ policy.

The second meeting of the union cabinet, in the last three days, was held on Wednesday. Important decisions related to the ₹20 trillion relief package announced by the government, were taken during the meeting. The decision to amend the obsolete ‘Essential Commodities Act.’ becomes the most important decision taken during the meeting. As per the amendment cereals, pulses, oilseeds, edible oils, onion and potatoes will be out of the purview of the Essential Commodities Act. The price, supply and distribution of the items covered by the Essential Commodities Act is monitored by the government. But with this amendment to the act, the farmer will become free from the clutches of the act. Now, the farmers will be able to stock any amount of their produce and will be able to sell at opportune times or places, making more profits. Union Minister Javadekar said that this decision has been taken in order to enable the farmers to get a better price for their produce and make multiple options available to them.

There is no need for an act to monitor stocking and selling of agricultural produce, as there is no shortage of agricultural produce in the country. The farmers had a longstanding demand to remove cereals, pulses, oil seeds from the essential commodities list. Javadekar said that the act was also an obstacle for investment in the agricultural sector. But from now on, companies will be able to purchase the produce, directly from the farmer. Javadekar informed that more importantly, there will be no taxes on this transaction. Javadekar further added that the union cabinet has decided on the direction of One Country One Market policy, by allowing sale through a direct agreement and a new special law, governing this, will be proposed soon.

Meanwhile, the union cabinet also decided to establish the ‘Project Development Cell, in every ministry, to create a conducive environment for investments in the country. At the same time, the decision to re-establish ‘Pharmacopoeia Commission for Indian Medicine & Homoeopathy’, also was taken in the union cabinet meeting.