Farm Bills, 2020

#Part 3

The Essential Commodities (Amendment) Act, 2020

- This act has provisions to remove commodities like cereals, pulses,

oilseeds, edible oils, onion and potatoes, from the list of essential
commodities.

- It aims to remove fear of private investors of excessive regulatory

interference in their business operations

- The freedom to produce, hold, move, distribute, and supply will lead
to harnessing the economies of scale and attract private sectors / FDIs
in agriculture sector.

- It will help drive up investment in cold storages and modernization of

food supply chain.

- 35-40% of grains stored in Cold storages is being wasted. the cost of

this wasted grains is around 35000 cr rupees.

- In extraordinary situations such as, war, famine, extraordinary price

rise and natural calamity, with the help of single notification these
commodities can be declared essential again.

 Merits of this Act :-

- Post Food Crises,
- Competition,
- Globalization.
 Demerits of this Act :-
- Artificial Demand
- Manipulation of Rates