Union Cabinet Approves Amendment to Essential Commodities Act to Attract Investment Into Farm Sector

New Delhi, June 3: The Narendra Modi government on Wednesday approved an amendment to the six-decade-old Essential Commodities Act (ECA). With this amendment, commodities like cereals, pulses, oilseeds, edible oils, onion and potatoes will be removed from the list of essential commodities. The decision was taken to attract investments into the farm sector. The ECA gives the government power to impose curbs on stocking of farm produce. MSP for 14 Kharif Crops Hiked by 50-83%, Farm Loans' Repayment Deferred Till August 31: Union Cabinet.

The ECA was created when there were shortages in the country, information and broadcasting Minister Prakash Javedekar said on Wednesday while briefing the reporters about the cabinet’s decision. The amending of the Act was announced last month by Finance Minister Nirmala Sitharaman last month during a press briefing to announce economic measures under Aatma Norbhar Bharat package. One nation one market system was also approved by the cabinet.

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The Union Cabinet approved 'The Farming Produce Trade and Commerce (Promotion and Facilitation) Ordinance, 2020'. It will create an ecosystem where the farmers and traders will enjoy the freedom of choice of sale and purchase of agri-produce. The Centre also approved ‘The Farmers (Empowerment and Protection) Agreement on Price Assurance and Farm Services Ordinance, 2020’. The ordinance will empower farmers for engaging with processors, aggregators, large retailers, exporters etc. on a level playing field.

(The above story first appeared on LatestLY on Jun 03, 2020 06:19 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).