Kolkata: Parliament passed the Essential Commodities (Amendment) Bill, 2020, which seeks to remove cereals, pulses, oilseeds, edible oils, onion and potatoes from the list of essential commodities.
The bill, which replaces an ordinance promulgated in June, is aimed at eliminating fears of private investors of excessive regulatory interference in their business operations.
“The relaxation on ECA will increase farmers’ income as they will be able to sale their produce anywhere, and not just to the local mandi. Now, large corporates will go deep into villages to buy crops directly. It will be remunerative for farmers,” the economist told PTI.
But it may also have two major adverse impacts if prices of essential produce jump at the farm level due to bulk procurement by large players or hoarders, said the economist who refused to be named as the subject has become a major political issue.
“First, inflation in rural areas will rise resulting in more poverty. Secondly, the government procurement cost for PDS is expected to rise,” he said.
A farmer in Hooghly district said that he is not aware of the details of the farm bills, but if he can sell his produce anywhere and large corporate buyers are allowed, there is a possibility of getting better price.
