The Essential Commodities (Amendment) Act, 2020
This will lead to harnessing of economies of scale and attract private sector/foreign direct investment into agriculture
Passed by the Lok Sabha on September 15, 2020.
Passed by the Rajya Sabha on September 22, 2020.
Received Presidential Assent on September 26, 2020
The EC (Amendment) Act 2020 aims to remove fears of private investors of excessive regulatory interference in their business operations.
It provides the freedom to produce, hold, move, distribute and supply.
This will lead to harnessing of economies of scale and attract private sector/foreign direct investment into the agriculture sector. It will help drive up investment in cold storages and modernization of the food supply chain.
It ensures that interests of consumers are safeguarded. The Amendment provides that in situations such as war, famine, extraordinary price rise and natural calamity, such agricultural foodstuff can be regulated.
However, the installed capacity of a value chain participant and the export demand of an exporter will remain exempted from such stock limit imposition so as to ensure that investments in agriculture are not discouraged.Click here for The Essential Commodities (Amendment) Act, 2020