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LATEST NEWS UPDATES | Why the decision to impose stock limits on pulses is flawed policy -Sukhpal Singh

Why the decision to impose stock limits on pulses is flawed policy -Sukhpal Singh

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published Published on Oct 4, 2021   modified Modified on Oct 5, 2021

-Down to Earth

The government’s flip-flop on stockholding limits does not help pulses’ pricing issues

The Union government’s decision on July 2, 2021, to impose stock limits on pulses till October 31 has once again fuelled the long-held perception that the country’s food policies are not even consistent, let alone being relevant.

On June 5, 2020, the Union government issued the Essential Commodities (Amendment) (ECA) Ordinance, 2020, which was later legislated into an Act.

It said a stock limit would be imposed only if there was a 100 per cent rise in retail prices of perishable food items in the last one year or five years.

The rationale for this amendment was that India was food surplus in most agricultural commodities. Farmers were not able to realise fair prices due to lack of investment in warehousing and processing capacities because of regulatory mechanisms prescribed under the ECA, 1955.

The lack of ‘ease of doing business’ was also cited for the poor investment in storage and processing infrastructure by the Economic Survey 2015-16 and the Arvind Subramaniam Committee Report on Pulses (2016).

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Down to Earth, 4 October, 2021, https://www.downtoearth.org.in/blog/agriculture/why-the-decision-to-impose-stock-limits-on-pulses-is-flawed-policy-78752


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