Amid soaring prices of food items, Centre removes onions, potatos, & cereals from 'essential commodities' list

New Delhi: Amid the skyrocketing prices of vegetables across the nation, the Parliament on Tuesday passed The Essential Commodities (Amendment) Bill, 2020, which removes cereal, pulses, oilseed, edible oil, onion, and potatoes from the list of committees tagged as "essential."

Earlier, when the prices of the likes of onions, tomatoes, and other kitchen staples go up, the government used to invoke the Essential Commodities Act (ECA) to ensure that there was no hoarding of these products. After the amendment of the Act, however, this will not be possible.

Interestingly, the Bill was passed in Rajya Sabha by a voice vote in the complete absence of the Opposition, which boycotted proceedings following the furor over the passing of the contentious Farm Bills. The Bill had been passed in the lower house on September 15. The Bill replaces an Ordinance promulgated in June.

Danve Raosaheb Dadarao, Minister of State for Consumer Affairs, Food and Public Distribution, said the Bill aims to "remove fears among private investors of excessive regulatory interference in their business operations."

He further added that the freedom to produce, hold, move, distribute and supply will lead to harnessing of economies of scale and attract private sector/foreign direct investment into the agriculture sector.

The amendments to the 1955 law provides that stock holding limit on commodities will only be imposed under exceptional circumstances like national calamities, famine with a surge in prices, the minister said, adding that in situations such as "war, famine, extraordinary price rise and natural calamity," such agricultural produce can be regulated.

Stating that the amendment is required to prevent wastage of agricultural produce due to lack of storage facilities, he added that it will help drive up investment in cold storage and modernization of the food supply chain.

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