Major agriculture reform

Context: Change to Essential Commodities Act(ECA) holds promise.

Problems with the ECA

• Anachronistic Legislation: As it gives powers to the Centre and State governments to regulate the production, supply, distribution, and prices of the commodity.

• NITI Aayog termed ECA as a hindrance to Agricultural exports.

• Disincentivizes investment: in warehouses and storage facilities.

Steps taken by the Govt.

• Deregulation of cereals, edible oil, oilseeds, pulses, onion, and potato: Will allow processors/millers to hold as much stock as needed. With limiting stock in exceptional circumstances.
• Removed trade barriers: allowed farmers to sell their crops through other channels and not bind them to APMCs.

Conclusion: Although it might hurt consumers, but it is not a issue as long as farmers are benefitting from it and not the middlemen.