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  • Category: Politics

    "Is Essential Commodities (Amendment) Act, 2020" helpful to farmers?"

    The "EssentialCommodities Act" was in force since 1955. This act was amended in 2020 and deemed to have come into force from the 5 th. day of June 2020. With this amendment, the supply of foodstuffs including cereals, pulses, potatoes, onions, edible oilseeds, and oils is deregulated. Previously, there was a limit to which these commodities can be purchased and stocked by private agencies. With the amendment to this act all the items mentioned and anymore to be notified by the Government are deregulated. A private agency can purchase any amount of these foodstuffs and store them for any length of time before selling them.

    These items may be regulated by the Government only under extraordinary circumstances like war, famine, natural calamities, and extraordinary price rise in the market. The stock limit may be imposed by the Government when the increase in the retail price of horticulture produce is 100% and 50% in the case of non-perishable agricultural foodstuffs. The Government will not come into the picture even if the retail prices increase by more than 90%.in the case of horticulture produce and more than 45% in the case of non-perishable agricultural foodstuffs.

    What happens now is that the private agencies stockpile large quantities of all these items in cold storage. When there is a short supply, they can be sold in the retail market at higher rates as the Government will not take action until the price rise is 100%. An artificial shortage may be created by hoarding the foodstuffs and raise the rates for higher profits.

    These foodstuffs will be purchased at the market rate from farmers and stored in cold storage. When there is a shortage, they will sell for a huge profit, which will go to the private agency but not the farmer. How far this will benefit the farmer? This amendment will affect the common man also. In this scenario, the big private agencies get all the profit. Give your unbiased opinions after studying the "Essential Commodities(Amendment ) Act, 2020
  • #720746
    I am dead sure that the essential commodities act would help the farmers in a big way. Earlier, when there were restrictions and limitations to store the commodities, there were no buyers from the farmers due to the fear of excess holding of the commodities. The farmers were at loss due to perishable commodities.

    Now the farmers are free to sell their products and buyers can buy an unlimited amount of products, store them, and dispose of them at their convenience.

    With the advent of improvement in food technology, nothing goes waste. Take the example of tomatoes that is being made into sauces & Ketchup and exported. Look at potatoes that are made into lovely chips and exported. No cereal goes waste. They are fried and packed and exported. The same is the case with oilseeds used for cosmetics.

    Corn is used for making Whiskey, Potatoes for Vodka, Barley for beer, Grapes for wine, and Sugarcane for Rum. We must thank the technology. Nothing is stocked and wasted. We must be thankful to the corporates for giving the proper shape to the farm products purchased from the farmers.

    There is no question of hoarding or stocking to make money. The farmers, the buyer and the customer would be very very happy.

    My simple explanation should make you understand better about the essential commodities.

    It would be an unwanted fear of stocking and hoarding by the buyers to sell it at higher prices.

    No life without Sun

  • #720753
    The author has raked up a wonderful subject to discuss which is more connected to the farmers related produce which they are making and marketing. For example there is a let loose on the price of sunflower refined oil in the recent past as the one liter pack which was costing us 85 rupees has now touched 140 rupees and this hike is nothing do with the farmers and the hoarders are citing cost escalation and keeping on raising the prices of oils. Now there are many reasons the traders are citing that whenever the big elections are going to be held the market is let loose so that maximum money is derived to fund for the political parties and this has been the practice from past. But I do not think that any farmer is getting benefited through this jacking up price and the hoarders are taking advantage of essential commodity act amendments.
    K Mohan @ Moga
    'Idhuvum Kadandhu Pogum "
    Even this challenging situation would ease

  • #720765
    Please discuss this point in this thread
    'To know what you know and what you do not know, that is true knowledge.'-Confucius

  • #720769
    Essential commodities act 2020 does not directly affect farmers. According to this law, farmers can store unlimited stock of their crops in their storerooms. Superficially, it appears a great law for farmers but the reality is that it will directly affect common people and will shower money on corporates and big farmers only. Those rich farmers who have storage facility can store their crops but most of the farmers are poor, so they will not have any advantage from this act. Most profit will go in the pockets of big private players. As they have reported of having already got built big godowns for storage they will store farm products and will wait until the price of essential commodities goes up. Common people will face extreme price hike, and they will not be in a position to protest or say to the government because the government does no more have any control on this black marketing because this black marketing is no more a crime. No court will hear you. Police will not arrest them. You will be helpless.

    If you are to buy flour at Rs 100/- or suppose Rs 1000/- per kg, you can't complain to the administration. If they supply pulses at Rs 300/- or suppose at Rs 3000/- per kg, we will have to purchase. These businessmen who will stock of essential commodities will not have any fear of police or law or lose of the vote because they are not active in politics. Common people will have no option but to suicide or to loot food grains from shops.


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