Major agriculture reform

The Tribune     18th May 2020     Save    
QEP Pocket Notes

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.

QEP Pocket Notes