India / Govt to amend Essential Commodities Act for better price realisation for farmers

New Delhi: As part of the third tranche of the ₹20 lakh crore economic package announced by Prime Minister Narendra Modi on Tuesday, Finance Minister Nirmala Sitharaman on Friday announced a slew of measures for agriculture and allied activities.

She said the government will amend Essential Commodities Act (ECA), after which cereals, edible oil, oilseeds, pulses, onions and potato will be deregulated.

"Government will amend Essential Commodities Act to enable better price realisation for farmers. Agriculture foodstuffs, including cereals, edible oils, oilseeds, pulses, onions and potato, will be deregulated," she announced

"Government to bring in law to implement agriculture marketing reforms to provide marketing choices to farmes. The law will provide adequate choices to farmer to sell produce at attractive price," she further said.

No stock limit will apply to processors or value chain participants following amendment to the Essential Commodities Act, said Sitharaman.

Stock limits will be imposed only under very exceptional circumstances like national calamities, famine after amendment of ECA, she said,

Sitharaman also announced that the Centre will set up a ₹1 lakh crore agri infrastructure fund for farm-gate infrastructure for farmers.

Addressing the media here, she said that financing facility of ₹1 lakh crore will be provided for funding in agriculture infrastructure projects at the farm-gate and aggregation points such as primary agricultural cooperative societies, farmer producer organisations and agriculture entrepreneurs, among others.

This will provide impetus for development for farm-gate/aggregation point affordable and financially viable post harvest management infrastructure, she said.

Observing the lack of adequate cold chain and post harvest management infrastructure in the vicinity of farm gate causes gaps in value chains, Sitharaman said that the fund will be created immediately.