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LATEST NEWS UPDATES | Freeing up the farmer: Govt to ease curbs on trade, open up markets -Harish Damodaran

Freeing up the farmer: Govt to ease curbs on trade, open up markets -Harish Damodaran

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published Published on May 16, 2020   modified Modified on May 16, 2020

-The Indian Express

Third tranche of COVID-19 economic package: Not only can farmers sell to anyone and anywhere, but traders and processors, too, will be able to freely buy, stock and move any quantity of agri-produce within the country.

Barely seven months after imposing limits on the maximum quantity of onion any wholesaler or retailer could keep, the Narendra Modi government on Friday announced what may turn out to be a defining “1991 moment” for Indian agriculture. The Centre, Finance Minister Nirmala Sitharaman said, will amend the Essential Commodities Act (ECA) to “deregulate” agricultural foodstuffs — including all cereals, pulses, oilseeds, onions and potatoes — and allow clamping of stock limits on these only under “very exceptional circumstances” like natural calamities and famines, which cause a “surge in prices”.

Sitharaman unveiled the third tranche of measures to cushion the impact of Covid-19 and the lockdown on the economy. As significant as the ECA amendment, was her proposed formulation of a Central law that will not bind farmers to sell their crop only to licensed traders in the APMC (Agricultural Produce Market Committee) mandis of their respective talukas or districts. The law once enacted will also remove all barriers to inter-state trade in farm produce.

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The Indian Express, 16 May, 2020, https://indianexpress.com/article/india/freeing-up-the-farmer-govt-to-ease-curbs-on-trade-open-up-markets-6412147/


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